Gold ETF net inflows rise to 4-mo high in Jun as lower prices draw investors
This story was originally published at 18:59 IST on 10 July 2026
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By J. Navya Sruthi
MUMBAI – Gold exchange-traded funds recorded net inflows at a four-month high in June as lower prices drew investors back to the precious metal, analysts said. However, assets under management of gold ETFs fell to a six-month low due to mark-to-market losses, they said.
According to data released by the Association of Mutual Funds in India, gold ETFs recorded net inflows of INR 34.43 billion in June, against net outflows of INR 7.25 billion in May. The assets under management of gold ETFs fell nearly 8% on month to INR 1.70 trillion at the end of June.
"Earlier we have seen investors unwinding positions (in gold ETFs), but now diversification of assets has started (again)," Manoj Kumar Jain, director and head of commodity and currency research at Prithvi Finmart, said. "These are attractive prices in gold for investing," Jain said.
In June, gold prices on the Multi Commodity Exchange fell more than 8% on month to INR 142,531 per 10 grams, tracking declines in global prices. On the COMEX, gold prices fell to $3,950 an ounce, their lowest in 2026, as a firm dollar and rising US Treasury yields weighed on the precious metal.
"Gold ETF inflows... point towards investors increasingly using passive products and gold as strategic portfolio allocation tools rather than tactical trades," Suranjana Borthakhur, head of distribution and strategic alliances at Mirae Asset Investment Managers (India), said in a note.
The number of folios in gold ETFs rose to 124.76 million as of Jun. 30 from 123 million a month earlier. Gold ETFs recorded redemptions of INR 14.64 billion and gross inflows of INR 49.08 billion in June. In May, they had recorded redemptions of INR 33.30 billion and gross inflows of INR 26.05 billion.
According to the World Gold Council, India recorded net inflows of $388.5 million into gold ETFs in June, while other Asian peers such as China and Japan reported net outflows. Indian investors remained optimistic about gold prices and viewed the current dip as an entry opportunity, the council said in its monthly report.
Meanwhile, gold ETF funds recorded negative returns in June. Zerodha Gold ETF Fund of Funds – Direct Plan was the worst performer in June with a negative return of 10.1%. Baroda BNP Paribas Gold ETF Fund of Funds – Direct Plan, HSBC Gold ETF Fund of Funds – Direct Plan, Kotak Gold fund Direct Plan, SBI Gold fund Direct Plan, and DSP Gold ETF Fund of Funds – Direct Plan were among the top 10 worst performers.
Although analysts expect short-term consolidation in gold prices in July and August due to hawkish global central banks and rising bond yields, they expect inflows into gold ETFs to continue in the coming months. "Flows will continue (into gold ETFs) as current prices are attractive. Gold is still positive for the long term, supported by global banks buying and de-dollarisation," Jain said.
At 1809 IST, the most active August gold contract on the MCX was at INR 144,080, down 0.8% from Thursday's close. End
US$1 = INR 95.33
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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