India’s Gold ETFs Record Historic $902 Million Inflows in September 2025

India’s gold exchange-traded funds (ETFs) witnessed a historic surge in investor participation in September 2025, drawing $902 million in net inflows, according to data from the World Gold Council (WGC). The inflows marked a 285% jump from $232 million in August, making September the fourth straight month of positive inflows this year and highlighting the growing appeal of gold as a safe-haven investment.

The record-breaking surge positioned India as Asia’s top destination for gold ETF inflows during the month, reflecting investors’ preference for portfolio stability amid volatile global markets and geopolitical uncertainty.

India’s Growing Share in Global Gold ETF Inflows

Following the September inflows, India ranked fourth globally for gold ETF investments, trailing only the U.S. ($10.3 billion), U.K. ($2.23 billion), and Switzerland ($1.09 billion). Within Asia, China ($622 million) and Japan ($415 million) were also strong contributors, helping the region record a combined $2.1 billion in ETF inflows during the month.

The robust investor response pushed India’s total gold ETF inflows for 2025 to $2.18 billion, already surpassing previous annual records. By comparison, total inflows stood at $1.29 billion in 2024, $310 million in 2023, and just $33 million in 2022, underscoring the sharp rise in investor confidence.

Drivers Behind the Surge

The unprecedented inflows into Indian gold ETFs were driven by a combination of domestic and global factors. Additionally, the U.S. Federal Reserve’s 25 basis point rate cut in September and expectations of further easing have bolstered gold’s appeal as lower yields typically enhance the metal’s attractiveness.

Global Context and Market Dynamics

Globally, gold ETF inflows totalled $17.3 billion in September, highlighting renewed investor confidence in the asset class. Apart from India, other major contributors included Germany ($811 million), Canada ($301 million), Italy ($234 million), Australia ($182 million), and South Korea ($165 million).

A weaker U.S. dollar, coupled with persistent trade policy uncertainty and slowing global growth, has encouraged investors to hedge against potential market shocks. With global equities near record highs, many institutional and retail investors are reallocating funds to gold ETFs as a protective measure.

Gold’s Enduring Role as a Safe Haven

With gold prices repeatedly touching record levels, investor sentiment toward the yellow metal remains strong. The recent rally has reinforced gold’s dual role, as both an inflation hedge and a strategic store of value.

Market experts note that the extraordinary inflows into Indian gold ETFs highlight not only domestic investor confidence but also India’s growing integration with global gold investment trends. Despite fluctuations in equity and currency markets, gold continues to attract steady inflows as part of diversified long-term portfolios.

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Conclusion

India’s record $902 million inflow into gold ETFs in September 2025 marks a landmark moment for the country’s investment landscape. With cumulative inflows this year already at historic highs, gold has reaffirmed its position as a trusted hedge against market volatility and macroeconomic uncertainty.

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