Can I use my Apple funds to purchase a gift card?

1. Redeem Apple Gift Cards or add money directly into your Apple Account Balance anytime. Then use it to pay for Apple products, accessories, apps, games, music, movies, TV shows, iCloud, you name it.
   1. Redeem
   2.  Add money
2. If I understand you correctly, what you want is buy Apple Gift Cards using Apple Account Balance.

There is a cyclicality in the transaction between 1 & 2, so please see the options below