Gold exchange-traded funds in India saw a remarkable surge in August 2025, attracting $233 million in inflows, a 67% increase from July's $139 million, driven by rising interest in gold as a safe-haven asset amid global uncertainties.
According to data released by the World Gold Council, gold ETFs in India registered their fourth consecutive monthly inflow in August 2025. The monthly investment of $233 million marked a 67% jump over July’s $139 million. This surge reflects sustained investor appetite for gold, seen as a hedge against equity market volatility and macroeconomic risks.
So far in 2025, gold ETFs in India have recorded inflows every month except for March and May. The year-to-date (YTD) inflows now stand at $1.23 billion, edging close to 2024’s full-year total of $1.29 billion.
The momentum in 2025 builds upon previous years' growth. Indian gold ETFs had logged $310 million in inflows in 2023, a significant increase from just $33 million in 2022, highlighting the growing confidence in ETFs offering exposure to gold.
These financial instruments offer investors a cost-effective, liquid method to invest in gold without the hassles of storage and purity verification. This makes them particularly appealing amid rising global tensions and economic uncertainties.
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Globally, gold ETFs, which are physically backed, added $5.5 billion in August, extending a 3-month inflow streak. North American funds led with $4.11 billion, followed by Europe with $1.95 billion. However, Asia posted net outflows of $496 million, mainly due to withdrawals from China totalling $834 million for the month.
Global gold ETFs AUM rose 5% to a record $407 billion on the back of strong inflows and firmer prices. Holdings increased to 3,692 tonnes, only 6% below the peak seen in November 2020.
India's gold ETFs continue to attract growing interest, with August clocking the highest monthly inflow in 4 months. With YTD figures nearing the previous year’s total and global flows also bullish, gold remains a favoured asset class amid rising uncertainties.
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Published on: Sep 8, 2025, 1:46 PM IST
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