Gold ETFs Attract ₹1,179 Crore as India's Physical Demand Rebounds

Gold Exchange-Traded Funds (ETFs) in India attracted ₹1,179 crore in the first half of August, even as gold prices rebounded. According to data from the Association of Mutual Funds in India (AMFI), cited by the World Gold Council, gold ETF inflows moderated after stronger inflows earlier in July.

Despite this moderation, gold ETF holdings increased by 1 tonne to 120 tonnes in July, with assets under management rising 2% month-on-month to ₹1.73 lakh crore. The positive flow trend continued into August, with an estimated ₹1,179 crore flowing into gold ETFs during the first two weeks of the month.

The rebound in physical gold demand is also visible in imports, with gold imports rebounding sharply in July, with import value rising to US$4.16 billion from US$1.97 billion in June. Estimated import volumes increased to 40-45 tonnes from 20 tonnes in June, signalling stronger physical demand and inventory replenishment.

The World Gold Council expects improving demand conditions to support a stronger festive season. However, it noted that elevated prices could continue to influence jewellery purchases, while investment demand remains supportive.