Global gold exchange-traded funds attracted $18 billion in net inflows during August, pushing total assets under management up 16% month-over-month to $615 billion, according to a recent report from the World Gold Council. Holdings increased by 121 tonnes to 4,189 tonnes, marking a new all-time high.

North America and Europe together accounted for roughly 90% of global inflows, with Europe posting its strongest month on record and North America recording its third-largest monthly inflow ever. European gold ETFs drew $7.9 billion in August, driven not only by shared fiscal sustainability concerns with the U.S. market but also by persistently elevated sovereign debt borrowing costs, which have amplified gold's role as a portfolio diversifier and alternative to sovereign bonds.

The report highlighted that policy anxieties stemming from potential U.S. intervention in foreign exchange markets to support the yen, ongoing fiscal sustainability worries amid persistent pressure on U.S. Treasury markets, and renewed dollar depreciation risks collectively accelerated investor allocation toward gold. Meanwhile, gold's breakout above key technical levels further reinforced market momentum, attracting additional tactical and institutional participation.

Central bank long-term buying continues to provide a solid floor beneath gold prices. In the second quarter, global central banks purchased a net 289 tonnes of gold, a substantial 62% year-over-year increase. The People's Bank of China extended its gold-buying streak to 22 consecutive months, with reserves climbing to 76.73 million ounces by the end of August, up 650,000 ounces month-over-month—the largest single-month increase since October 2023. Amid the broader global de-dollarization trend, diversifying assets and gradually reducing reliance on dollar-denominated holdings is likely to remain a key strategic direction for central bank reserve management.

Goldman Sachs research now forecasts gold prices will reach $4,900 per ounce by the end of 2026, underpinned by robust demand from central banks seeking to diversify their foreign exchange reserves. The firm's analysts also noted rising demand for gold call options as investors hedge their portfolios against potential major shifts in government policy—a trend that could amplify price volatility in both directions.

Qu Rui, senior deputy director at Golden Credit Rating's research department, sees near-term gold direction depending on August U.S. inflation data and the September Federal Reserve meeting. If core CPI continues to ease, the probability of the Fed holding rates steady in September rises significantly, potentially allowing gold to break through the $4,600 per ounce resistance level. Conversely, a rebound or flat reading in inflation data would increase the odds of a 25-basis-point rate hike in September, potentially pulling gold back toward $4,300 per ounce.

Looking ahead, the World Gold Council believes U.S. fiscal and debt issues remain an important support for gold. If government intervention in bond markets alleviates financing pressures, gold's rally could face temporary headwinds. However, should market participants interpret such intervention as reflecting worsening fiscal strain, falling real yields and a weaker dollar could actually push prices higher. Absent a credible fiscal consolidation plan, gold is likely to continue benefiting from investor concerns over debt and fiscal sustainability.

Related concept stocks include China Gold International Resources Corp Ltd (02099) , which reported sales revenue of approximately $914 million in the first half of 2026, up 57.52% year-over-year. Mine operating profit reached roughly $620 million, surging 123.83%, while profit attributable to owners climbed 153.31% to about $507 million, with earnings per share of $1.2799.

Chifeng Jilong Gold Mining Co Ltd (06693) generated operating revenue of RMB 7.018 billion in the first half of 2026, a 33.11% increase year-over-year. Net profit attributable to shareholders of the listed company rose 56.5% to RMB 1.732 billion, with basic earnings per share of RMB 0.92.

Zijin Mining Group Co Ltd (02899) achieved operating revenue of RMB 194.178 billion in the first half of 2026, up 15.78% year-over-year, while net profit attributable to shareholders increased 68.17% to RMB 39.17 billion.