Gold ETFs Rebound In May, Record Net Inflow Of Rs 292 Crore

Gold exchange-traded price range (ETFs) regained investor passion in May after two months of web withdrawals, the Association of Mutual Funds in India (AMFI) information confirmed on Tuesday. Gold ETFs recorded a web influx of Rs 291.91 crore in May 2025, marking an development from the marginal outflow of Rs 5.82 crore in April, in step with the AMFI information.

“Flows into the category had remained muted over the past two months, following modest outflows in March as well. The renewed traction in May signals a gradual return of investor interest, likely driven by resilient gold prices and sustained global uncertainties that reinforce gold’s appeal as a strategic hedge,” stated Nehal Meshram, Senior Analyst–Manager Research, Morningstar Investment Research India.

The uptick additionally displays that traders are regaining self assurance in gold, because it continues to supply steadiness amid combined indicators from fairness and bond markets. Furthermore, the relative steadiness in gold costs via May have equipped a extra horny access level for traders having a look to construct or rebalance allocations towards more secure property.

The resurgence in flows additionally highlights the rising position of Gold ETFs in strategic asset allocation, particularly as traders search to regulate possibility in an more and more unsure funding setting. “While inflows are yet to reach the levels seen earlier in the year, the trend suggests a gradual and measured return of interest in gold, underpinned by its long-term diversification benefits,” stated Meshram.

According to Motilal Oswal Private Wealth’s May Alpha Strategist Report, in Q1 2025, the gold marketplace skilled a historical surge, with costs attaining file highs amid escalating geopolitical tensions, tariff wars, and a weakening US greenback. The overall provide rose modestly, however the hovering value ended in a vital building up in marketplace price.

Investment call for noticed a dramatic 170 in step with cent on-year upward thrust, pushed via a robust rebound in gold ETF inflows, in particular in Europe, Asia, and India.