Gold is rising but investor participation is still low. ETF capital inflows hit the highest level since January, and the market may still have room to rise

The Zhitong Finance App learned that analysts pointed out that despite the recent sharp rise in gold prices, the level of investor participation is still significantly lower than during the previous period when gold prices were high, indicating that this round of gold prices may not have reached the stage of overcrowding, and there may be room for further growth.

According to data released by The Chart Report, even with the recent rapid rise in gold prices, the circulation share of gold ETFs is still far below the level when gold prices peaked in previous rounds. This means that compared with the historical rise in gold, the current number of investors participating in the gold market through ETFs is still relatively limited.

Meanwhile, capital inflows to gold funds have begun to pick up markedly. According to data from Bank of America's Global Investment Strategy Division and EPFR, the Gold Fund recorded the largest inflow of capital since January 2026 in the last week. Recently, the weekly inflow volume has increased significantly, and the four-week moving average capital flow has further increased.

This change is in contrast to most of the past decade. Previously, even though the price of gold rose in stages, the overall capital inflow to gold funds was still relatively moderate. However, with the recent acceleration of capital entry into the gold market, investors' interest in precious metals allocation is showing signs of recovery.

It is worth noting that the current rise in gold prices coincides with low participation in ETFs. If investors further increase the gold allocation ratio in the future, the continued inflow of ETFs and gold funds may become a source of new demand driving the price of gold, providing further support for this round of the market.

Judging from relevant data, gold has attracted more investment capital this year, but the overall level of participation has not reached the level of previous market highs. As a result, although the price of gold has experienced a marked rise, the current financial side has yet to show the level of congestion during the historically high period. If the recent trend of gold fund inflows continues, the demand for new allocations may continue to be an important factor affecting the trend of gold prices.