In October, Gold Exchange Traded Funds (ETFs) saw a surge in investor interest, with net inflows totaling Rs 1,961 billion, according to the latest data from AMFI (Association of Mutual Funds of India). This figure represents a notable increase from Rs 1.233 billion in September.

The October inflow set a new record for monthly net inflows in the Gold ETF category. As of January 2020, Gold ETFs have achieved cumulative net inflows of Rs 24.153 billion.

Information from the World Gold Council reveals that the total physical gold holdings of Indian gold ETFs have almost doubled in the last four years and reached a new high of 54.5 tonnes as of October 31, 2024. This compares with the 27.4 tonnes held four years ago.

Various factors, including holiday rush, increasing geopolitical uncertainties, changes in central bank policies and stock market fluctuations, appear to be fueling the continued rise in demand for gold. Both individual and institutional investors show great interest in the gold market.

Gold exchange-traded funds (ETFs) are a type of financial instrument traded on exchanges that allow investors to benefit from fluctuations in gold prices. By purchasing a gold ETF, investors are essentially obtaining a representation of gold price performance and a specific amount of gold without the need to physically own the precious metal.

This makes gold ETFs a convenient and cost-effective way to invest in gold, which is widely considered a safe haven asset in times of economic uncertainty or volatility. Opting for the best gold ETFs in India can increase the stability and security of your investment portfolio.

There has been significant inflow into Indian gold ETFs over the last 15 years, especially during periods of uncertainty in 2011, 2020 and 2024. According to the data, domestic gold ETFs recorded increases of approximately 17, 14 and 12 tons in these years.

gold prices

Gold prices fell to their lowest level in almost a month on November 12; This reflects the caution of investors awaiting key U.S. economic data and comments from Federal Reserve officials. Spot gold fell 0.1% to $2,617.15 per ounce as of 04:36 GMT, its lowest level since October 10. U.S. gold futures were slightly higher, rising 0.2% to $2,623.30 an ounce.

The price per gram of 24 carat gold in India was 7,893.3 rupees, and the price per gram of 22 carat gold was 7,237.3 rupees. Last week, 24 carat gold gained 1.24% in value, but the metal decreased by 2.14% monthly.

Research Analyst Jateen Trivedi, Deputy Head of Commodities and Foreign Exchange at LKP Securities, said: “The strengthening of the dollar index is putting pressure on the yellow metal. The rise in US bond prices following Trump’s election victory contributes to the correction trend in bullion. This trend is likely to continue as long as gold trades below the critical $2,750 resistance level. “On the COMEX, $2,600 acts as an important support, while on the MCX, the ₹74,500-75,000 range is expected to provide overall support.”

Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said: “COMEX Gold prices rose to $2,650.30 per ounce last week as investor sentiment shifted towards risky assets following Trump’s election victory and the successful bid by the Republican Party to regain control. Gold briefly rose above $2,700 after the Fed’s widely expected 25 basis point interest rate cut, but the strengthening dollar and rising treasury yields kept gold under pressure and closed the week at 2%. It closed down at $2,694.80 per ounce.”