Gold ETF inflows surge to 7-month peak despite sharp bullion correction

Gold exchange-traded funds recorded inflows of around ₹4,500 crore during September, representing a seven-month high and underscoring sustained investor interest in the precious metal despite a significant correction in bullion prices, according to market data.

The September inflows stand among the strongest witnessed in recent times, highlighting a marked divergence between physical gold price movements and investor allocation patterns. While spot gold prices fell approximately five percent during the period, fund inflows suggest investors maintained conviction in the asset class as a portfolio hedge.

Analysts attribute the robust ETF inflows to a methodical, allocation-driven approach to commodities among domestic investors. The resilience in fund flows despite price weakness indicates that market participants are viewing the correction as a buying opportunity rather than a signal to reduce exposure.

The trend reflects broader investor strategy amid persistent global uncertainties, including macroeconomic volatility and geopolitical tensions that continue to support safe-haven demand for gold. Exchange-traded funds offer investors liquid, cost-efficient access to bullion exposure without the logistical complexities associated with physical gold ownership.

Gold ETF inflows have become an important barometer of retail investor sentiment in India's commodity markets, with fund flows often preceding major movements in bullion prices as market participants adjust their hedging strategies.