Exchange traded funds that invest in gold have been the top asset gatherers so far in a young third quarter as investors look for safety from the debt upheaval that is unnerving global markets.

Gold exchange traded products have taken in $1.8 billion already to lead all categories, according to a research note from Deutsche Bank.

“We believe that the latest inflows into precious metals (especially to gold) ETPs are related to the macro events threatening the stability of the financial markets as investors seemed not able to find safety on either side of the Atlantic,” the analysts wrote. “We expect inflows into precious metals to continue for as long as the U.S. debt ceiling talks and the European sovereign crisis remain uncertain.”

Gold ETFs rose Monday after U.S. leaders failed to reach a compromise over the weekend to boost the debt ceiling, which heightened fears of a potential default. In Europe, Greece saw its debt rating downgraded further by Moody’s.

“Although recent economic data has turned more optimistic, investors remain cautious with an eye on what is going on with the U.S. debt ceiling discussions at Washington and the Greek sovereign crisis developments in Europe,” Deutsche Bank said.

So far in the third quarter, ETF flows point to gold, growth stocks, emerging markets equity and high-yield as the top investment trends.

Showing Page 1 of 2