A drop below the psychologically important $1,300 an ounce level at the end of the month did not deter precious metals investors from pouring money into the sector during July.

Exchange traded funds backed by physical gold saw modest net inflows last week of 4 tonnes to reach a total of 1,743.7 tonnes.

July recorded the highest inflows for the dozens of gold-backed funds traded around the world since November 2012 and the first monthly net addition since March.