Gold Rush Continues as ₹2,596 Crore Flows into Indian Funds

Indian investors poured ₹2,596.70 crore into Gold ETFs in August, up 67% from ₹1,558.75 crore in July. The surge is part of a global trend, with global gold-backed ETFs attracting approximately $18 billion in August and total holdings increasing by 121 tonnes to a record 4,189 tonnes.

The strong returns of Gold ETFs have made them harder to ignore, with two large funds delivering more than 43% over one year. However, the latest inflow number should not be taken as an automatic buy signal, as strong past performance can attract investors precisely when future returns become harder to predict.

The global gold market is sending a similar signal, with central banks adding another layer of support. According to the World Gold Council's 2026 central-bank survey, 89% of respondents expect global central-bank gold reserves to increase over the next 12 months, and 45% expect their own gold holdings to increase.