Gold Exchange-Traded Funds (ETFs) in India are heading toward record inflows in 2025, with total investments approaching $3 billion, according to the latest report by the World Gold Council (WGC).
The inflows so far this year are nearly equal to the total investments made between 2020 and 2024 combined, showing a strong revival in investor interest in gold as a safe asset.
Why Are Investors Buying Gold ETFs?
The surge in demand follows gold’s massive 50% rally in 2025. Several global factors have contributed to this rise – including central bank gold buying, geopolitical tensions, and interest rate cuts by the US Federal Reserve.
As inflation worries and market volatility increase, investors are moving funds from equities and bonds into gold, which is seen as a hedge against uncertainty.
Monthly Inflows: Slight Dip in October
In October 2025, Indian Gold ETFs recorded $850 million in inflows, slightly below September’s $942 million. However, the trend remains positive as investors continue to diversify portfolios with gold-backed instruments.
Total Assets and Gold Holdings
The total assets under management (AUM) of Indian Gold ETFs have now reached $11 billion, with physical gold holdings of approximately 83.5 tons.
This marks a significant milestone for India’s gold investment market, reflecting both retail and institutional confidence in gold’s long-term value.
Outlook for 2026
Experts expect gold demand to remain strong in early 2026 as central banks continue buying and global risks stay elevated. If gold prices stay firm, ETF inflows could easily surpass the current record, making 2025 the best year ever for India’s gold ETFs.
Source: World Gold Council (WGC)
