Gold ETFs See Record Rs 3,751 Crore Inflow in Jan Amid Global Uncertainty
Gold exchange-traded funds (ETFs) in India saw record-breaking inflows of Rs 3,751.4 crore in January 2025, reflecting growing investor interest in gold as a safe-haven asset. According to data from the Association of Mutual Funds in India (AMFI), this is the highest monthly inflow ever recorded for gold ETFs, significantly surpassing the Rs 640 crore investment in December 2024.
On a yearly basis, gold ETFs witnessed a 471% surge, rising from Rs 657 crore in January 2024 to Rs 3,751.4 crore in January 2025. This remarkable growth was fueled by global economic uncertainties, increasing market volatility, and rising gold prices. Gold ETFs also provided strong returns of 7.29% in January, further attracting investors.
The surge in gold investments was driven by multiple factors, including geopolitical tensions, inflation concerns, and US President Donald Trump’s tariff policies. With increasing uncertainties surrounding global trade and economic stability, investors turned to gold as a hedge against volatility. Additionally, expectations of interest rate cuts by the US Federal Reserve and other central banks boosted demand, as lower interest rates reduce the opportunity cost of holding gold.
Investors also view gold ETFs as a key tool for diversification and protection against inflation. As inflationary pressures continue to impact global economies, many see gold as a reliable store of value.
Gold prices have remained volatile, hitting an all-time high earlier this week before declining on Wednesday following hawkish comments from US Federal Reserve Chair Jerome Powell, who signaled a slower approach to rate cuts. On the Multi Commodity Exchange (MCX), gold futures for April delivery dropped by Rs 345 to Rs 85,178 per 10 grams.
In the global market, gold futures fell 0.18% to $2,892.76 per ounce. On February 10, gold prices hit new record highs in India amid growing concerns over Trump’s trade policies, further driving up demand for the precious metal. On that day, 24-carat gold was priced at Rs 8,537 per gram, while 22-carat gold stood at Rs 8,332 per gram, according to the India Bullion and Jewellers Association (IBJA).
With market volatility persisting, experts predict continued strong demand for gold ETFs, reinforcing gold’s position as a preferred investment asset in uncertain times.
