New Delhi— Gold exchange-traded funds (ETFs) saw a strong resurgence in May, recording net inflows of ₹291.91 crore, according to data released Tuesday by the Association of Mutual Funds in India (AMFI). The rebound comes after two consecutive months of net outflows, including ₹5.82 crore in April.
“Investor flows into Gold ETFs had remained subdued recently, but the renewed traction in May indicates a return of interest—likely driven by resilient gold prices and persistent global uncertainties,” said Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India.
The inflows reflect growing investor confidence in gold as a safe-haven asset, especially amid volatility in equity and bond markets. Stable gold prices in May offered a favorable entry point for those seeking to diversify or rebalance their portfolios.
“While inflows haven’t returned to peak levels seen earlier this year, the trend suggests a cautious yet steady comeback, highlighting gold’s long-term value in risk management,” Meshram added.
According to Motilal Oswal Private Wealth’s May Alpha Strategist report, the first quarter of 2025 saw a historic rally in gold prices, driven by escalating geopolitical tensions, trade disputes, and a weakening U.S. dollar. Although overall supply rose modestly, market value surged due to record-high prices.
Investment demand jumped 170% year-over-year, fueled by a sharp rebound in gold ETF inflows across Europe, Asia, and India. (Source: IANS)
