Gold ETF inflows rise 67% to Rs 2,597 crore in August

Gold ETF inflows increased by 67 percent in August to Rs 2,596.70 crore. This marks a strong rebound from the Rs 1,558.75 crore recorded in July. Data from the Association of Mutual Funds in India confirms the sharp rise in investor demand.

Domestic gold prices remained elevated during the period. MCX gold futures for the October contract traded around Rs 1,53,679 per 10 grams on September 10. Spot gold closed the previous session at Rs 1,52,764 per 10 grams.

August marks a recovery from July decline

The August figure is still 25 percent below the Rs 3,443.23 crore seen in June. Inflows more than halved between June and July before recovering in August. The three-month trend shows high volatility in the pace of capital entry.

Gold prices gained 9 percent in rupee terms during August. The metal ended the month at approximately Rs 1,55,114 per 10 grams. In US dollar terms, gold rose 13.3 percent to $4,563 per ounce.

Gold accounts for a quarter of ETF flows

Total ETF inflows in India reached Rs 10,160.87 crore in August. Equity ETFs attracted the largest share at Rs 7,237.49 crore. Gold ETFs received Rs 2,596.70 crore, while silver ETFs took Rs 1,270.63 crore.

Debt ETFs recorded net outflows of Rs 944.97 crore. Hybrid ETFs saw marginal inflows of Rs 1.02 crore. Gold ETFs therefore represented roughly 26 percent of all net ETF inflows for the month.

Global gold ETF assets hit record levels

Global gold-backed ETFs attracted $18 billion in August. This is the second-largest monthly inflow in value terms on record. North American and European funds drove the increase, with Europe receiving a record $7.9 billion.

Assets under management in global gold ETFs rose 16 percent to $615 billion. Collective holdings increased by 121 tonnes to a record 4,189 tonnes. The GN auto markets/commodities: gold prices report highlights this synchronized global demand.