Gold ETF Inflows Surge 67% in August as Geopolitical Tensions and Rate Outlook Shift

Gold exchange-traded funds (ETFs) in India saw a significant surge in net inflows, rising by 66.59% to Rs 2,596.70 crore in August 2026 compared to Rs 1,558.75 crore the previous month. The total assets under management for gold ETFs grew by 10.31%, increasing from Rs 1,73,301.40 crore at the end of July to Rs 1,91,166.08 crore by August 31, 2026.

The jump in net inflows was driven by several factors, including escalating geopolitical tensions and changing interest rate outlooks. The ongoing macroeconomic instability in the West Asia region has led to a rise in safe-haven demand for gold, prompting investors to reallocate their portfolios towards gold ETFs.

Data from the CME FedWatch tool showed low probability of rate cuts, with markets pricing in potential rate hikes amid persistent inflation pressures. This has kept gold ETFs highly preferable as investors seek a hedge against currency volatility and macroeconomic uncertainty.