July Sees 55% Decline in Gold ETF Inflows Amid Price Volatility
Gold exchange-traded fund (ETF) inflows fell by 55% in July to ₹1,559 crore, following a sharp correction in precious metals prices. This decline comes after an extended rally that pushed gold ETF assets under management to record highs.
The sudden drop in flows is attributed to profit-booking and the unwinding of leverage positions, according to industry experts. Navneet Damani, head of research for commodities and currency at Motilal Oswal Financial Services, notes that retail participation is heavily tied to price momentum.
Vikram Dhawan, head commodities and fund manager at Nippon India Mutual Fund, attributes the pullback to profit-taking and the unwinding of speculative positions. He also highlights that higher oil prices and rising global bond yields added macro headwinds, driving tactical capital out.