New Delhi, Sep 8: India’s gold exchange-traded funds (ETFs) witnessed net inflows of $233 million in August 2025, up 67% from $139 million in July, according to World Gold Council data.
This is the third consecutive month of inflows globally and the fourth month in India, reflecting a steady investor interest in gold. Except for March and May, every month of 2025 has seen ETF inflows.
In India, 24-carat gold is priced at Rs 10,634 per gram on Monday, per the India Bullion and Jewellers Association (IBJA). Year-to-date inflows into gold ETFs stand at $1.23 billion, close to the $1.29 billion total in 2024. For comparison, India’s gold ETFs drew $310 million in 2023, up from $33 million in 2022.
Analysts suggest that gold continues to be an attractive hedge against equity market volatility, especially amid global trade tensions and geopolitical risks.
Gold prices have risen nearly 35% this year, reaching a record $3,500 per ounce on April 22, after a stock-market drop triggered by US President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell. Concerns about the Fed’s independence, after Trump’s attempt to remove Governor Lisa Cook, pushed investors toward safe-haven assets.
Gold ETFs provide investors with liquid, low-cost exposure to physical gold prices, without the need for storage.
Globally, physically-backed gold ETFs added $5.5 billion in August, marking a three-month streak of inflows. North America led with $4.11 billion, Europe added $1.95 billion, while Asia saw net outflows of $496 million. China experienced its second consecutive month of withdrawals, totaling $834 million in August.
Global gold ETF assets under management rose 5% to a record $407 billion, totaling 3,692 tonnes, still 6% below the November 2020 peak. Analysts link the rally to expectations of a US Fed rate cut at the September 17-18 meeting, weak US payroll data, tariff inflation concerns, and rising industrial demand for silver from EVs and solar projects. Market forecasts indicate a 91% chance of a 25-basis-point rate cut at the upcoming Fed meeting.
