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After a strong period of gains, gold experienced a notable short-term correction. At the same time, investment demand remains strong: global holdings of physically backed gold ETFs have reached a record 4,250 tonnes, with investors allocating funds to gold ETFs for 11 consecutive weeks.

Two parallel developments have shaped the gold market in recent weeks. On the one hand, gold has undergone a short-term correction following a strong period of gains. On the other, gold ETF data show continued inflows and record global holdings.

Goldman Sachs provides an additional perspective on investment demand, estimating that gold accounts for only around 0.18% of US household financial assets.

Short-term correction after a period of gains

Gold lost around 1.6% of its value within a few hours, while silver declined by approximately 2.8%. TradingView data also point to increased volatility and the potential for larger short-term corrections, even as the long-term factors supporting demand for precious metals remain in place.

The short-term price move therefore coincides with continued inflows into physically backed gold ETFs.

Global gold ETF holdings reach a record 4,250 tonnes

Holdings in physically backed gold ETFs increased by approximately 35 tonnes over the past week, reaching a record 4,250 tonnes. New inflows amounted to approximately $3.9 billion, with US funds accounting for the majority.

Since the July low, global holdings have increased by 208 tonnes, surpassing the previous February record of 4,176 tonnes. Investors have now allocated funds to gold ETFs for 11 consecutive weeks.

More detailed data on global gold ETF holdings and flows are available from the World Gold Council in its Gold ETFs, Holdings and Flows dataset.

Demand rises despite higher real yields

Total gold holdings in ETFs have risen to approximately 100.5 million ounces, once again approaching the high recorded at the beginning of the year, even though the US 10-year real yield has exceeded 2.6%.

Inflows have been led primarily by the US-based GLD and GLDM funds. China also stands out, with Chinese gold ETFs attracting around $2 billion over the past month, including more than $600 million in the past week alone.

Investors have therefore continued to increase their exposure to gold despite higher real yields and the resulting higher opportunity cost of holding the metal.

Gold accounts for around 0.18% of US household financial assets

Goldman Sachs provides another perspective on the scale of investment exposure to gold.

According to its estimate, gold accounts for around 0.18% of US household financial assets. Its model estimates that an additional 0.01 percentage-point allocation to gold — assuming it were driven by additional investor demand — could increase the gold price by approximately 1.4%.

This is a model-based estimate illustrating both gold’s relatively small current share of US household financial assets and the potential sensitivity of its price to a larger reallocation of capital towards gold.

China’s gold imports exceed 1,000 tonnes

Alongside ETF demand, physical demand in China also remains significant. According to data from China’s customs authority reported by Bloomberg, China imported more than 1,000 tonnes of gold during the first eight months of 2026, the highest January–August level since at least 2017. Import volumes have already surpassed the total recorded for the whole of 2025.

A broader view of global demand is provided by World Gold Council data compiled by Incrementum AG. Between 2010 and 2025, China, India and Russia together accounted for approximately 52% of total gold demand, including purchases by central banks and consumers, while the US accounted for around 5% over the same period.

Current data therefore point to several parallel developments: following the short-term price correction, global holdings of physically backed gold ETFs remain at record levels, inflows have continued for 11 consecutive weeks, and physical demand in China also remains strong.

Sources: World Gold Council; Bloomberg; Goldman Sachs; TradingView; China General Administration of Customs; Incrementum AG.

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