Are Gold ETFs in India Attracting Record Net Inflows?
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Synopsis
In October, India's gold ETFs attracted a staggering $850 million in net inflows, setting a new record of $3.05 billion for 2025 so far. This surge highlights a growing trend among investors looking for safe-haven assets amidst global uncertainties.
Key Takeaways
- India’s gold ETFs gained $850 million in October.
- The total AUM of gold ETFs reached $11.3 billion.
- India ranks third globally in ETF inflows for October.
- Global gold ETF inflows amounted to $8.2 billion.
- Gold prices have fluctuated amid market conditions.
Mumbai, Nov 7 (NationPress) In October, India’s gold exchange-traded funds (ETFs) experienced remarkable net inflows of $850 million. This surge brings the total to an unprecedented $3.05 billion in 2025 thus far, marking the highest recorded for a single year according to data from the World Gold Council (WGC).
While the October inflows were roughly 6 percent lower than September's $911 million, they still represent the second-largest monthly inflow in Asia.
For the fifth consecutive month, the positive flow has increased the assets under management (AUM) to $11.3 billion, as indicated by the data.
Globally, gold ETF inflows totaled $8.2 billion in October, positioning the bullion market on track for one of its strongest years ever.
India ranked third worldwide in ETF inflows for October, following the US with $6.33 billion and China with $4.51 billion. Japan trailed India with $499.5 million, and France recorded $312 million.
In contrast, several European markets experienced outflows, with the UK leading at $3.5 billion, followed by Germany and Italy.
By the end of October, the total AUM for global gold ETFs rose by 6 percent month-on-month to $503 billion, with total holdings increasing by 1 percent to 3,893 tonnes.
As of Friday, the price for 10 grams of 24-carat gold fell to Rs 1,20,231, as reported by the India Bullion and Jewellers Association (IBJA), amid renewed interest in profit booking.
“Currently, gold’s crucial make-or-break level is at $3,855, with silver maintaining the $46.70 support zone. Gold has support at Rs 1,19,870-1,19,280 while facing resistance at Rs 1,21,090-1,21,600. Silver's support is at Rs 1,46,450-1,45,750 with resistance at Rs 1,48,340 and Rs 1,49,280,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Analysts observed that the dollar index has dipped from its three-month peak, and concerns regarding the US government shutdown are prompting investors to gravitate towards safe-haven assets. Additionally, escalating geopolitical tensions are further supporting the rally in gold.
Point of View
I recognize the significant impact of gold ETFs on our financial landscape. The record inflows not only reflect investor sentiment but also highlight India's growing stature in the global investment arena. The Nation stands firm in its commitment to delivering insightful analysis and reliable information on these emerging trends.
NationPress
09/11/2025
Frequently Asked Questions
What are gold ETFs?
Gold ETFs are exchange-traded funds that invest in gold bullion, allowing investors to gain exposure to gold prices without having to purchase physical gold.
Why are gold ETFs popular in India?
Gold ETFs are favored in India due to their liquidity, ease of trading, and the security they offer in a volatile economic environment.
How do gold ETF inflows affect the market?
Increased inflows into gold ETFs can drive up gold prices and indicate a shift in investor sentiment towards safer assets.
What factors influence gold prices?
Gold prices are influenced by various factors, including geopolitical tensions, currency fluctuations, and changes in investor demand.
What is the current trend in gold investment?
The current trend shows a significant rise in gold investments, driven by market uncertainties and a search for stable assets.
