Gold ETFs log strongest inflows in 5 months at Rs 24,040 crore in January, over double December

Gold price: Gold exchange-traded funds (ETFs) extended their strong momentum in January, emerging as one of the most preferred investment avenues amid volatile markets and global uncertainty. Inflows into gold ETFs jumped sharply to Rs 24,040 crore during the month, more than doubling from Rs 11,647 crore in December and far exceeding November’s Rs 3,742 crore. This marks the highest monthly inflow into gold ETFs in the past five months and underlines a decisive shift in investor preference towards precious metals.

The scale of the January surge becomes clearer when compared with earlier months. Inflows in September and October stood at Rs 8,363 crore and Rs 7,743 crore respectively, indicating that the latest numbers reflect not just a recovery but a sharp acceleration in demand. Market participants say gold is increasingly being used as a core diversification tool rather than a tactical allocation, especially as equities face bouts of volatility and fixed-income returns remain uncertain.

According to the latest data from the Association of Mutual Funds in India (AMFI), January also marked an unprecedented month for precious metal ETFs as a combined category. Gold and silver ETFs together attracted net inflows of Rs 33,503 crore, comfortably surpassing equity mutual fund inflows of Rs 24,013 crore during the month. While gold ETFs accounted for Rs 24,050 crore, silver ETFs drew a substantial Rs 9,463 crore, up sharply from ₹3,962 crore in December. The strong showing by silver ETFs highlights a broadening investor appetite for exchange-traded commodity products beyond equities.

January’s inflow figures

January’s inflow figures are among the strongest seen in recent months and brought precious metal ETF flows almost on par with equity mutual funds, which attracted around Rs 24,029 crore. After remaining relatively subdued for much of the year, gold ETF inflows began picking up towards the end of 2025. Investments rose to nearly Rs 7,700 crore in October, softened to Rs 3,742 crore in November, and rebounded sharply in December before accelerating further in January. The sustained increase over the past two months points to a structural shift in asset allocation, with investors opting for direct exposure to gold rather than relying solely on multi-asset strategies.

Nehal Meshram, Senior Analyst at Morningstar Investment Research India, said the January surge reflects strong and persistent demand for gold ETFs, driven primarily by safe-haven and diversification considerations. “Part of the strength likely reflects fresh allocations at the start of the year, as investors rebalance portfolios and add hedges after a volatile period across risk assets,” he noted. 

Meshram added that gold ETFs benefit from being regulated, liquid and cost-efficient products, making them an easy “add-on” allocation during uncertain macroeconomic conditions. The continuity of strong inflows, he said, underscores gold’s structural role in Indian portfolios, as investors remain mindful of inflation risks, currency volatility and ongoing geopolitical uncertainty.

 Anand Vardarajan, Chief Business Officer, Tata Asset Management, said: "Precious metals continue to shine; Gold ETF flows in Jan have doubled over December. January saw record single-month flows of nearly Rs 24,000 crore, taking the FYTD number to approximately Rs 61,000 crore."

Umesh Sharma, CIO Debt, The Wealth Company Mutual fund, said: "Gold and multi‑asset categories continued to attract strong investor interest, with gold ETFs posting record inflows of ~₹24,040 crore in January 2026, driven by the superior one‑year performance of gold and silver relative to other major asset classes. Their sustained outperformance has supported steady AUM expansion, reinforcing these segments as preferred diversification avenues amid volatile market conditions."

Strong performance

The strong performance of gold ETFs also lifted overall inflows into ETFs and overseas-oriented fund categories. Total net inflows across these segments rose to Rs 39,954.63 crore in January, up from Rs 26,723.24 crore in December. While other ETFs continued to see steady interest, funds of funds investing overseas recorded stable but modest inflows, suggesting investors are selectively increasing exposure rather than broadly chasing higher risk.

Underlying investor interest is the sharp rally in gold prices over the past year. MCX spot gold prices have delivered exceptional returns, rising more than 100% between January 2025 and January 2026, with prices crossing Rs 1.67 lakh per 10 grams by the end of January. This strong performance has reinforced gold’s appeal as a hedge during periods of market stress.

The trend is also visible globally. According to the World Gold Council, January 2026 alone accounted for about 12.5% of total gold ETF assets under management in the domestic market. Worldwide, gold ETF holdings remain near a more than three-year high, even after brief price corrections, as investors continue to seek protection amid waning confidence in sovereign bonds, currencies and global growth prospects.

Gold, silver ETFs in Feb

Gold and silver exchange-traded funds (ETFs) rebounded sharply on Monday, recovering part of the heavy losses seen last week after the precious metals ended their record rally. Among the five largest silver ETFs by assets, Kotak Silver ETF led the gains, jumping 9.4%. HDFC Silver ETF, Nippon India Silver ETF (Silverbees), ICICI Prudential Silver ETF and SBI Silver ETF rose between 8.2% and 8.7%. International spot silver gained around 6.7% during the session, trading near $83 an ounce.

Gold ETFs also moved higher. Kotak Gold ETF climbed 2.85%, while Nippon India, SBI, HDFC and ICICI Prudential Gold ETFs advanced in the range of 1.7–2.4%. Spot gold rose about 2% to around $5,068 by Monday evening.

The rebound follows a bruising week, during which silver ETFs had plunged 19–26%, while gold ETFs declined 3–9%. Volatility has made buyers cautious, though wedding demand continues to support gold sales. Long-term investors remain interested, with gold delivering nearly 70% returns over the past year amid global uncertainty.