Gold ETFs See 600% Jump in Inflows in June 2025: What’s Fuelling the Rally?

In a remarkable turnaround, Gold Exchange-Traded Funds (ETFs) witnessed a sharp spike in investor interest in June 2025, with inflows soaring by over 613% month-on-month to reach ₹2,080 crore. 

This dramatic rise follows relatively muted activity in the previous months and signals a decisive shift in investor sentiment toward gold as a preferred hedge amid rising uncertainty, as per The Economic Times report.

What’s Driving the Surge in Gold ETF Space?

According to the report, the renewed enthusiasm for gold stems from a mix of geopolitical tensions, central bank buying, concerns over inflation, and falling global interest rates.

The Central banks worldwide are accelerating gold purchases to reduce dependence on the US dollar and bolster economic security. 

Read More: RBI Foreign Exchange Reserves: Gold Holdings Rise 26% Since FY21.

A Turnaround in Gold ETFs Flows

After seeing net outflows in March (-₹77.21 crore) and April (-₹5.82 crore), gold ETFs reversed course in May with inflows of ₹291.91 crore. But it was June that marked a breakout month for the category.

Gold ETFs AUM Trends Reflect Rising Interest

The total Assets Under Management (AUM) for gold ETFs rose to ₹64,777 crore as of June 30, 2025, marking a 4% increase over May's figure of ₹62,452 crore. On a yearly basis, the category’s AUM has surged by a massive 89%, up from ₹34,355 crore as of June 2024.

Read More: Top 5 Gold ETFs in July 2025 With 5-Year CAGR of 14% and Above.

Conclusion

The robust inflows into gold ETFs in June 2025 underscore gold’s enduring appeal as a safe-haven asset during volatile times. However, Gold can play a strategic role in a diversified portfolio, but only when aligned with individual financial goals and risk appetite.

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.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.