Gold ETF inflows hit 7-month high in Sept despite 5% fall in bullion

Gold ETF inflows rose to about ₹4,500 crore, among the highest in recent times, which reflects a steady, allocation-led approach to commodities amid global uncertainty.

Investor interest in precious metals saw a sharp increase as inflows into gold ETFs rose to a seven-month high in September.

 

Data from the Association of Mutual Funds in India (AMFI) show that gold ETF inflows rose sharply to ₹4,450.61 crore in September, up from ₹2,596.7 crore in August, marking their highest level in seven months. In February, the net gold inflows came in at ₹5,254.95 crore and in January at ₹24,039.96 crore amid bullion prices touching record highs. 

 

 Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Mutual Fund, said that in the ETF space, gold inflows rose to about ₹4,500 crore, among the highest in recent times, which reflects a steady, allocation-led approach to commodities amid global uncertainty.

 

 

What drove gold ETF inflows?

Concerns around the global economic outlook and ongoing uncertainty surrounding monetary policy are also aiding the interest in the yellow metal. Gold acts as a hedge amid an uncertain geopolitical and economic environment.

 

On a cumulative basis, Gold ETFs have attracted net inflows of approximately ₹45,925 crore during January-September CY2026, already surpassing the ₹42,961 crore garnered during the entirety of CY2025, Morningstar analyst Nehal Meshram observed.

 

The strong collections, she said, highlight investors' growing preference for gold as a strategic portfolio allocation despite elevated valuations and intermittent price volatility.

 

Investor sentiment in the bullion market was strong even as the precious metal declined 6 per cent in the international market. Meanwhile, gold was down nearly 5 per cent in the domestic spot market, showed data available on MCX. 

Gold outlook; source: Kedia Advisory

 

That said, gold has remained one of the best-performing asset classes globally in 2026, supported by strong central-bank purchases and persistent demand from investors seeking portfolio diversification amid an uncertain macroeconomic environment. These factors have helped sustain the metal's attractiveness as a defensive asset during periods of market and economic uncertainty, said Meshram.

 

Investors are optimistic about the metal given the state of the global economy, pressure on the rupee and geopolitical tension, said Nirav Karkera, head of research and fund manager, W by Groww. "It also works as a diversifier at a time when Indian equities are volatile but going nowhere."

 

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