Gold ETF: India's Gold exchange-traded funds draw $233 million in August; up 67% from July

Gold exchange-traded funds (ETFs) in the country jumped 67 per cent to $233 million in August 2025 as compared with July's $139 million. 

According to the World Gold Council data, this marks the third straight month of inflows globally, and the fourth month of inflows in India, highlighting steady investor appetite for the yellow metal. 

In 2025, gold ETFs have seen inflows except for two months- March and May.

In India, the price of 24-carat gold per gram is at Rs 10,634 on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).

Year-to-date inflows in ETFs stood at $1.23 billion, just shy of the full-year total of $1.29 billion for 2024. India's gold ETFs attracted approximately $310 million in 2023, up from $33 million in 2022.

Analysts indicate that ongoing allocations highlight gold's attractiveness as a hedge against equity weakness amid global trade and geopolitical risks.

Gold prices have surged nearly 35 per cent this year, touching a record high of $3,500 per 
ounce on April 22 after a stock-market slump triggered by US President Donald Trump's criticism of Federal Reserve Chair Jerome Powell.

Concerns about the Fed's independence increased as Trump attempted to remove Governor Lisa Cook, leading investors to seek safe-haven assets.

Gold ETFs offer investors liquid, low-cost exposure to physical gold prices, eliminating the need for storage concerns.

Globally, physically backed gold ETFs added $5.5 billion in August, extending a three-month streak of inflows. North American funds led with $4.11 billion, followed by Europe with $1.95 billion, while Asia posted net outflows of $496 million. China experienced its second consecutive month of withdrawals in August, totalling $834 million, following $325 million in July.

Global gold ETF assets under management rose 5 per cent to a record $407 billion, driven by strong inflows and firmer prices. Holdings increased to 3,692 tonnes, remaining 6 per cent below the November 2020 peak.

Analysts linked the ongoing rally to expectations of a US Fed rate cut at the September 17-18 meeting, weak US payroll data, concerns over tariff inflation, and increased industrial demand for silver from EVs and solar.

Market forecasts indicate a 91 per cent likelihood of a 25-basis-point rate cut at the upcoming US Federal Reserve meeting.

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