Gold ETF Inflows Soar 67% in August Amid Global Uncertainty
Gold exchange-traded funds (ETFs) saw a significant surge in investor interest in August, with net inflows increasing by 67% to Rs 2,596 crore. This comes amid gold's strong performance and ongoing global uncertainty.
Rajesh Minocha, a Certified Financial Planner (CFP), said the rise in interest is driven by gold's recent strong performance and ongoing global uncertainty. Many investors are considering potential changes in interest rates and viewing gold as a diversification tool to balance equities during volatile periods.
Jasmeet Singh, Executive Director at Anand Rathi Wealth Limited, attributed the increase in inflows partly to recency bias, where investors chase asset classes that have performed well recently. He noted that gold prices rose 15% from July to August due to geopolitical uncertainty, a falling dollar, and falling Treasury yields.
Experts caution against making allocation decisions based solely on recent inflows or price performance. Nitin Agrawal, CEO of Mutual Funds at InCred Money, said the strong flows indicate investors continue to view gold as a strategic portfolio allocation rather than a short-term tactical trade.