In October, Gold Exchange-Traded Funds (ETFs) saw a surge in investor interest, with net inflows totaling Rs 1,961 crore, as per the most recent data from AMFI (Association of Mutual Funds in India). This figure represents a notable increase from September’s Rs 1,233 crore.
The October inflow sets a new record for monthly net inflows in the Gold ETF category. From January 2020 onwards, Gold ETFs have amassed a cumulative net inflow of Rs 24,153 crore.
Information from the World Gold Council reveals that Indian gold ETFs’ total physical gold holdings nearly doubled over the past four years, reaching a new peak of 54.5 tonnes by October 31, 2024. This is compared to 27.4 tonnes held four years prior.
Various factors such as festive rush, escalating geopolitical uncertainties, changes in central bank policies, and stock market fluctuations appear to have fueled the ongoing increase in demand for gold. Both individual and institutional investors have shown significant interest in the gold market.
Gold exchange-traded funds (ETFs) are a type of financial instrument traded on stock exchanges, allowing investors to capitalize on fluctuations in gold prices. By purchasing a gold ETF, investors are essentially acquiring a representation of gold price performance and a specific quantity of gold, without the need to physically possess the precious metal.
This makes gold ETFs a convenient and cost-effective way to invest in gold, a commonly regarded safe-haven asset in times of economic uncertainty or volatility. Opting for top gold ETFs in India can enhance the stability and security of your investment portfolio.
In the past 15 years, Indian gold ETFs experienced substantial inflows, particularly during periods of uncertainty in 2011, 2020, and 2024. According to data, domestic gold ETFs saw increases of approximately 17, 14, and 12 tonnes in these respective years.
Gold prices
Gold prices touched nearly one-month low on November 12, reflecting investor caution as they await crucial US economic data and commentary from Federal Reserve officials. Spot gold slipped by 0.1% to $2,617.15 per ounce by 0436 GMT, marking its lowest point since October 10. US gold futures showed a slight uptick, rising 0.2% to $2,623.30 per ounce.
In India, the cost of 24-carat gold stood at Rs 7,893.3 per gram, while 22-carat gold was priced at Rs 7,237.3 per gram. Over the past week, 24-carat gold has gained 1.24%, but the metal has dipped 2.14% month-on-month.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, “Strengthening dollar index is exerting pressure on the yellow metal. The rise in US bond prices following Trump’s election victory is contributing to the corrective trend in bullion. This trend is likely to persist as long as gold trades below the critical $2,750 resistance level. On COMEX, $2,600 serves as a significant support, while in MCX, the range of ₹74,500-75,000 is expected to provide overall support.”
Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said ,”COMEX Gold prices fell to a one-month low of $2,650.30 per ounce last week, as investor sentiment shifted toward risk assets following Trump’s election victory and the Republican Party’s successful bid to regain control of the US Senate. Gold briefly rebounded above $2,700 after the Federal Reserve’s widely anticipated 25-basis point rate cut. However, stronger dollar and rising Treasury yields kept gold under pressure, and it closed the week down 2% at $2,694.80 per ounce.”