Gold Holdings of Indian Gold ETFs Increase 79% to $18.4 Billion in 1 Year

Gold exchange-traded funds (ETFs) in India have experienced a notable surge in holdings, with a 79% increase over the past year. This growth reflects a shift towards safe-haven assets as investors respond to global uncertainties. 

Significant Growth in Gold ETF Holdings 

According to the World Gold Council, the assets under management (AUM) of Indian gold ETFs rose from $7.2 billion in April 2025 to $18.4 billion by May 2026.  

This increase in AUM is mirrored by a rise in physical gold holdings, which grew from 65.3 tonnes to 116.7 tonnes during the same period. 

Gold ETFs are mandated to hold physical gold to back investments, ensuring that investor interests are secured by tangible assets. 

Rising Gold Prices Fuel Investment Demand 

Gold prices have seen a strong upward trend, more than doubling from approximately $2,100 per ounce in April 2024.  

This price rally has been attributed to geopolitical tensions, such as reciprocal tariff measures and conflicts in Iran, driving investors to seek the stability of gold. 

Read More: Indian Banks Restart Gold and Silver Imports After Month-Long 3% Levy Standoff! 

Shift from Jewellery to Investment Demand 

While jewellery demand has weakened due to rising prices, investment demand has surged. The World Gold Council reported a decline in jewellery demand from 563 tonnes in 2024 to 440 tonnes in 2025.  

Conversely, Indian gold ETFs have attracted significant interest, with global ETF demand reaching 794 tonnes in 2025. 

Gold ETFs as a Major Investment Channel 

Gold ETFs now account for nearly 40% of total gold investment demand, highlighting their growing popularity.  

The convenience and liquidity of ETFs have made them an attractive option for both retail and institutional investors. 

Continued Inflows into Leading Gold ETFs 

India's major gold ETFs have continued to receive strong inflows in 2026. Nippon India Gold BeES, with 36.5 tonnes of gold, has seen inflows of approximately $1.1 billion.  

ICICI Prudential Gold iWIN ETF and SBI ETF Gold have also attracted significant investments, reflecting sustained interest in gold-backed products. 

Conclusion 

The growth in Indian gold ETFs over the past year underscores a shift towards gold as a preferred investment amid geopolitical uncertainties. As jewellery demand remains subdued, the appeal of gold ETFs continues to rise, driven by their convenience and security. 

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