Gold ETFs Pull In $3 Billion in July

Global gold backed exchange traded funds brought in $3 billion during July, reversing two straight months of money leaving the sector. Total assets under management grew by 1 percent to reach $530 billion as the precious metal also snapped a four month losing streak with a 2 percent monthly gain.

European funds drove the turnaround by supplying $2 billion of the fresh capital. The United Kingdom led that group by adding $875 million, while Switzerland followed with $657 million. Asian funds added $616 million, and North America saw a modest inflow of $71 million.

Buyers stepped back in as many treated prices near $4,000 an ounce as a solid entry point. The recovery gained extra momentum in August with a 5 percent price rise, supported by falling oil prices that eased inflation worries and renewed hopes for looser monetary policy.

Traders should watch the upcoming Federal Reserve decisions closely. Any shift toward lower interest rates could draw more money into gold, while talk of rate hikes might test these recent price gains.