India’s Gold ETF Inflows Drop 55% in November but Buying Streak Continues

India's gold ETFs saw net inflows of $379 million in November, a steep 55% drop from October. Despite the decline, investors continued their steady buying trend, marking 6 straight months of positive inflows.

Except for March and May, every month in 2025 has shown firm interest in gold ETFs. Total inflows for the year have reached $3.43 billion, the highest ever for a calendar year. This compares with $1.29 billion in 2024, $310 million in 2023, and just $33 million in 2022.

Global Flows Also Slow Down

The decline was not limited to India. Worldwide buying also weakened in November:

• North America: $1.1 billion inflows (down 83% from $6.5 billion in October)
• Europe: $1 billion inflows (after $4.4 billion outflows in October)
• Asia (ex-India): $3.1 billion inflows (down from $6.1 billion in October)

Why Flows Weakened

Several factors influenced the softer demand:

• Expectations of a December Fed rate cut faded due to strong US economic data and hawkish comments from the Federal Reserve.
• Easing geopolitical tensions, especially progress in Ukraine peace talks, reduced immediate safe-haven demand for gold.
• Stock market volatility led some Indian investors to book profits in gold ETFs, taking advantage of their strong returns and high liquidity.

China Stands Out

China was a major exception. The country saw $2.2 billion flow into gold ETFs in November. Weak equity markets, rising gold prices, geopolitical concerns, and new VAT reforms encouraged investors to shift from jewellery purchases to gold ETFs.

Also Read:Best Gold ETFs in India for December 2025: SBI Gold ETF, HDFC Gold ETF, and More!

Outlook for Gold

According to the World Gold Council’s 2026 outlook:

• Gold is likely to trade within a range unless major global events shift sentiment.
• Slower global growth and falling interest rates could support modest gains.
• A sharp economic downturn with higher risks could further boost gold demand.
• Strong US growth under effective policy implementation may lift the dollar and interest rates, putting pressure on gold prices.

The Council also notes that central bank buying and gold recycling trends will play supporting roles. However, gold’s core purpose, as a diversifier and stability provider—will remain important amid ongoing market volatility.

Conclusion

Although India’s gold ETF inflows weakened in November, long-term demand remains strong with record yearly figures. Global trends also point to a cautious but steady interest in gold, influenced by shifting economic expectations and geopolitical developments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.