How Much Did India’s Gold ETFs Attract in August?
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Synopsis
In August 2025, India’s gold ETFs attracted $233 million, marking a significant increase from July and showcasing a strong investor interest in gold. As global markets face uncertainties, gold remains a favored asset. Discover the factors driving this trend and what it means for investors.
Key Takeaways
- Gold ETFs saw $233 million in inflows in August 2025.
- Increased interest in gold reflects investor confidence.
- Year-to-date inflows reached $1.23 billion.
- Global gold ETF assets rose to $407 billion.
- Market forecasts suggest a likely Fed rate cut.
New Delhi, Sep 8 (NationPress) India’s gold exchange-traded funds (ETFs) experienced impressive net inflows of $233 million in August 2025, representing a remarkable 67 percent increase from the $139 million noted in July, according to data from the World Gold Council.
This marks the third consecutive month of global inflows and the fourth month of inflows specifically in India, reflecting a consistent interest from investors in the yellow metal. Apart from March and May, every month of 2025 has recorded inflows.
In India, the price of 24-carat gold per gram stood at Rs 10,634 on Monday, as per the India Bullion and Jewellers Association (IBJA).
Year-to-date inflows in ETFs reached $1.23 billion, nearing the full-year total of $1.29 billion for 2024. India's gold ETFs attracted about $310 million in 2023, a significant rise from $33 million in 2022.
Experts suggest that the ongoing allocations underscore gold's appeal as a protective measure against equity market weaknesses amidst global trade tensions and geopolitical uncertainties.
Gold prices have surged by nearly 35 percent this year, achieving a record high of $3,500 per ounce on April 22, following a stock market decline influenced by former US President Donald Trump’s remarks about Federal Reserve Chair Jerome Powell.
Fears regarding the Fed's independence escalated as Trump attempted to dismiss Governor Lisa Cook, prompting investors to pursue safe-haven assets.
Gold ETFs provide investors with liquid, cost-effective exposure to physical gold prices, eliminating concerns related to storage.
Globally, physically backed gold ETFs garnered $5.5 billion in August, continuing a three-month streak of inflows. North American funds led with $4.11 billion, followed by Europe at $1.95 billion, while Asia experienced net outflows of $496 million. China saw its second consecutive month of withdrawals in August, totaling $834 million, following $325 million in July.
Global gold ETF assets under management rose by 5 percent to a record $407 billion, propelled by strong inflows and rising prices. Holdings climbed to 3,692 tonnes, remaining 6 percent below the peak recorded in November 2020.
Analysts attribute the ongoing rally to expectations of a US Fed rate cut at the September 17-18 meeting, weak US payroll data, worries over tariff inflation, and heightened industrial demand for silver driven by electric vehicles and solar energy.
Market predictions indicate a 91 percent chance of a 25-basis-point rate cut in the upcoming US Federal Reserve meeting.
Point of View
It's evident that the ongoing trend of inflows into India’s gold ETFs showcases the enduring appeal of gold during times of economic uncertainty. The active interest from investors highlights the importance of gold as a financial asset that can provide stability amidst fluctuating markets. NationPress will continue to monitor these developments closely.
NationPress
08/09/2025
Frequently Asked Questions
What are gold ETFs?
Gold ETFs are exchange-traded funds that invest in gold bullion and provide investors with exposure to physical gold prices without the need for storage.
Why are investors turning to gold?
Investors are turning to gold as a hedge against market volatility and geopolitical risks, making it a safe-haven asset in uncertain times.
How have gold prices performed recently?
Gold prices have surged nearly 35 percent in 2025, reaching a record high of $3,500 per ounce in April.
What factors influence gold ETF inflows?
Factors such as global market conditions, interest rates, and geopolitical tensions influence inflows into gold ETFs.
What is the outlook for gold ETFs?
The outlook for gold ETFs remains positive, with expectations of continued inflows amid economic uncertainties and potential rate cuts by the US Federal Reserve.
