Gold ETFs see record Rs 3,751 crore inflow in India in Jan amid global tensions, US tariffs

Gold exchange-traded funds (ETFs) witnessed a monolithic surge successful inflows successful January, arsenic investors poured Rs 3,751.4 crore into these funds, according to the Association of Mutual Funds successful India (AMFI) information connected Wednesday.

The inflows successful January were the highest-ever recorded for golden ETFs successful a azygous month, arsenic Rs 640 crore was invested successful December 2024.

Gold ETFs person witnessed singular maturation implicit the past year. On a yearly basis, these funds recorded a monolithic 471 per cent summation successful inflows, rising from Rs 657 crore successful January 2024 to Rs 3,751.4 crore successful January 2025.

In summation to the surge successful investments, Gold ETFs delivered awesome returns, offering an mean summation of astir 7.29 per cent successful January.

The surge successful investments was driven by aggregate factors, including rising golden prices and expanding marketplace volatility amid US President Donald Trump's tariff threats. With planetary uncertainties and geopolitical tensions affecting capitalist sentiment, galore turned to golden arsenic a safe-haven asset.

Additionally, expectations of involvement complaint cuts by large cardinal banks, including the US Federal Reserve, person made golden much attractive.

Lower involvement rates trim the accidental outgo of holding golden which further boosted demand.

Investors are besides utilizing golden ETFs to hedge against ostentation and diversify their portfolios. As inflationary pressures proceed to interaction economies worldwide, golden remains a preferred plus for those seeking stability.

Gold prices person been fluctuating aft hitting an all-time precocious earlier this week.

However, prices dipped connected Wednesday pursuing hawkish comments from US Federal Reserve Chair Jerome Powell, who signalled a slower attack to complaint cuts.
On the Multi Commodity Exchange (MCX), golden futures for April transportation declined by Rs 345 to Rs 85,178 per 10 grams.

In the planetary market, golden futures fell 0.18 per cent to $2,892.76 per ounce.

On February 10, golden prices were surged to caller grounds highs successful the home futures marketplace arsenic uncertainty implicit the US President Donald Trump's tariff policies accrued request for the yellowish metal.

On that day, the terms of 24-carat golden was Rs 8,537 per gram, portion 22-carat golden was Rs 8,332 per gram, according to the India Bullion and Jewellers Association (IBJA).