1 week ago
Gold ETF Inflows Rise as Prices Rebound, Investor Demand Endures
Gold ETFs let people invest in gold without storing physical bars or jewellery.
Investors put about ₹1,179 crore into these funds during the first two weeks of August.
They also invested ₹1,560 crore in July, although that was less than in the previous month.
Gold ETF holdings and the total value managed by the funds both increased in July.
More people opened gold ETF accounts, bringing the total to about 1.25 crore.
Some investors bought when prices were lower, while others became interested again when prices started rising.
Physical gold demand also improved as shoppers and jewellers prepared for the festive and wedding season.
However, high prices may still make some people delay buying jewellery.
Gold ETFs attracted an estimated ₹1,179 crore during the first two weeks of August.
July net inflows stood at ₹1,560 crore, down 55% from the previous month.
Gold ETF holdings rose by 1 tonne to 120 tonnes in July, while assets under management increased 2% to ₹1.73 lakh crore.
Gold ETF accounts expanded by 57,000 in July, reaching 1.253 crore accounts.
Lower prices, the subsequent rebound, safe-haven demand and expectations of a softer US Federal Reserve stance are supporting gold interest.
- Who
- Indian gold ETF investors, jewellery consumers, jewellers and manufacturers, as reported by the World Gold Council and the Association of Mutual Funds in India.
- What
- Gold ETFs continued to receive inflows while physical gold demand and prices also strengthened.
- Where
- India.
- When
- In July and during the first two weeks of August; the article identifies the ETF data as July 2026.
- Why
- Lower prices attracted strategic investors, while the price rebound, safe-haven demand, central-bank buying and expectations of a softer US Federal Reserve stance supported continued interest.
Investment Demand Remains Supportive
High Prices Could Restrain Jewellery Buying
Gold investment
Investment Demand Remains Supportive
The World Gold Council said lower prices attracted investors seeking strategic exposure, and the later price rebound revived interest in gold ETFs.
High Prices Could Restrain Jewellery Buying
July ETF inflows were 55% lower month-on-month, showing that the pace of investment moderated despite remaining positive.
Physical gold demand
Investment Demand Remains Supportive
Jewellery demand, imports and jewellers’ inventories strengthened as consumers and businesses prepared for the festive and wedding season.
High Prices Could Restrain Jewellery Buying
The World Gold Council said elevated prices could continue to influence or limit jewellery purchases.
Key facts
- August ETF inflows
- Estimated ₹1,179 crore during the first two weeks of August.
- July ETF inflows
- ₹1,560 crore in net inflows, down 55% month-on-month.
- ETF holdings
- 120 tonnes in July, up by 1 tonne.
- ETF assets under management
- ₹1.73 lakh crore in July, up 2% month-on-month.
- Gold ETF accounts
- 1.253 crore total accounts after 57,000 folios were added in July.
- Gold imports
- July import value rose to US$4.16 billion from US$1.97 billion in June.
- Estimated import volumes
- About 40–45 tonnes in July, compared with 20 tonnes in June.
Sources
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