Gold ETFs in India See Big Jump in Investments This August
Investors in India are showing strong interest in gold once again. In August 2025, India’s gold exchange-traded funds (ETFs) pulled in a whopping $233 million in net inflows. That’s a sharp 67% increase from the $139 million seen in July, according to fresh data from the World Gold Council. This surge highlights how people are turning to gold as a safe bet amid uncertain times.
This isn’t a one-off trend. Globally, gold ETFs have enjoyed three straight months of inflows, while in India, it’s the fourth month in a row. Looking back at 2025, inflows have happened every month except March and May. No wonder gold remains a top choice for savvy investors looking for stability.
Right now, the price of 24-carat gold in India stands at Rs 10,634 per gram as of Monday, based on figures from the India Bullion and Jewellers Association (IBJA). With gold prices soaring nearly 35% this year, it’s no surprise that demand is heating up. The yellow metal even hit a record high of $3,500 per ounce on April 22, fueled by a stock market dip after former US President Donald Trump’s sharp comments on Federal Reserve Chair Jerome Powell.
Adding to the buzz, Trump’s push to remove Federal Reserve Governor Lisa Cook raised worries about the Fed’s independence. Investors quickly shifted to safe-haven assets like gold to protect their money from global trade tensions and geopolitical risks. Analysts say this steady flow into gold ETFs shows how the metal acts as a solid hedge against shaky stock markets.
Year-to-date, India’s gold ETF inflows have reached $1.23 billion in 2025, almost matching the entire $1.29 billion total from 2024. For context, 2023 saw about $310 million, a big leap from just $33 million in 2022. Gold ETFs make it easy for people to invest—they give you liquid, low-cost access to physical gold prices without the hassle of storing the metal yourself.
On the global stage, physically backed gold ETFs added $5.5 billion in August, keeping the three-month inflow streak alive. North American funds led the pack with $4.11 billion, while Europe chipped in $1.95 billion. Asia, however, saw net outflows of $496 million. In China, investors withdrew $834 million in August—their second month in a row after $325 million in July.
Overall, global gold ETF assets under management climbed 5% to a record $407 billion, thanks to these inflows and rising prices. Holdings now total 3,692 tonnes, still 6% below the peak from November 2020.
What’s driving this gold rally? Experts point to expectations of a US Federal Reserve rate cut at the September 17-18 meeting. Weak US payroll numbers, fears of tariff-driven inflation, and growing demand for silver in electric vehicles (EVs) and solar panels are also playing a role. Market bets show a 91% chance of a 25-basis-point rate cut, which could push gold prices even higher.
If you’re thinking about investing in gold ETFs in India, this trend suggests it’s a smart move for diversifying your portfolio amid economic uncertainties. Keep an eye on those global cues—they’re shaping the future of gold investments worldwide.
