Gold ETF Inflows in India Drop 55% in November to $379 Million
Despite slowdown, India maintains six-month streak of steady gold investments as 2025 sees record annual inflows
India, Dec 08 : India’s gold exchange traded funds (ETFs) recorded net inflows of $379 million in November, marking a sharp 55 percent decline from October. Despite the moderation, the country sustained its six-month streak of consistent gold buying.
This year, gold ETF inflows in India have surged to a record $3.43 billion, the highest annual inflow ever, raising assets under management (AUM) to $12.2 billion. For comparison, inflows were $1.29 billion in 2024, $310 million in 2023, and $33 million in 2022. Only March and May saw net outflows in 2025, reflecting otherwise strong investor interest throughout the year.
The moderation in November inflows was not unique to India. Global gold ETF purchases also slowed. North America saw inflows of $1.1 billion, down 83 percent from $6.5 billion in October, while Europe collected $1 billion after $4.4 billion in outflows the previous month. Asia (excluding India) recorded $3.1 billion, down from $6.1 billion in October.
Analysts attribute the subdued inflows to mixed investor sentiment. Early November saw reduced expectations of a US Federal Reserve rate cut following resilient economic data and hawkish Fed minutes. A temporary easing of geopolitical tensions, particularly around Ukraine peace talks, also dampened safe-haven demand. Additionally, volatility in equities led some investors to book profits from gold ETFs, further limiting November inflows.
China bucked the global slowdown trend, with a massive $2.2 billion flowing into its gold ETFs in November. Factors driving demand included weak equity markets, a rebound in gold prices, geopolitical uncertainty, and recent VAT reforms encouraging investment in gold ETFs over jewellery.
Looking ahead, the World Gold Council predicts 2026 will be shaped by persistent geoeconomic uncertainty. Gold prices may remain rangebound under stable conditions, but surprises could drive moderate to strong gains. If global growth slows or interest rates decline, gold could benefit further, while faster US growth and rising rates may pressure prices. Central bank purchases and gold recycling trends will also influence market dynamics.
Gold remains a key portfolio diversifier, providing stability amid global financial volatility, ensuring that investor interest in ETFs stays robust despite short-term fluctuations.
