Market Performance: Gold ETF Sees Strong December Finish
As market volatility continued to keep investors on edge, Gold ETF inflows hit a yearly high in December, reflecting a clear shift toward safety and long-term allocation.
December saw Gold ETF inflows jump to Rs 11,646 crore, a sharp rise compared to Rs 3,742 crore in November. This marked the strongest monthly inflow of the year and capped off a volatile yet decisive turnaround in investor sentiment.
The momentum didn’t come overnight. After a weak start to the year, flows gradually picked up pace as uncertainty lingered across global and domestic markets.
Here’s how the year unfolded for Gold ETFs:
- April–May: Muted inflows, reflecting weak early-year sentiment
- June onwards: Gradual improvement in flows
- August: Rs 2,190 crore
- September: Rs 8,363 crore
- October: Rs 7,743.19 crore
- November: Brief consolidation at Rs 3,742 crore
- December: Sharp surge to Rs 11,646 crore
The numbers tell a clear story—investors increasingly leaned on Gold ETFs as volatility persisted.
Main News: Volatility Pushes Gold ETF Demand Higher
The steady rise in Gold ETF inflows points to a shift in how investors are approaching asset allocation. Instead of short-term trades, gold is being used more strategically to balance portfolios during uncertain phases.
Gold struggled in the early part of the year, but sentiment began improving from mid-year as market swings became more frequent. By September and October, inflows remained elevated, signalling growing confidence in gold-linked instruments.
December’s sharp jump stands out not just for its size, but for what it represents—a preference for stability over risk as markets remained unpredictable.
Gold ETF Industry Snapshot: Assets and New Launches
By the end of December 2025, the net Assets Under Management (AUM) of Gold ETFs stood at Rs 1,27,896 crore, highlighting the scale and maturity of the segment.
Activity on the supply side remained limited:
- Two new Gold ETFs launched in December
- Bandhan AMC
- The Wealth Company
- Total mobilisation: Around Rs 20 crore
Despite fewer new launches, existing Gold ETFs absorbed strong inflows, reinforcing investor preference for established products during volatile periods.
Why Gold ETFs Stayed in Focus?
Several factors worked together to keep Gold ETFs in demand:
- Persistent volatility across equity and bond markets
- A growing preference for regulated and liquid gold exposure
- Rising domestic gold prices supporting investor confidence
- Increasing use of ETFs for portfolio diversification
Gold ETFs continued to offer a simple, transparent way to access gold without physical handling, making them a preferred choice during uncertain market phases.
Summary: Gold ETF Trends Signal Strategic Shift
The sharp rise in Gold ETF inflows past Rs 11,000 crore in December reflects a broader shift in investor behaviour. After a slow start to the year, gold steadily regained attention as volatility refused to ease.
With net AUM nearing Rs 1.28 lakh crore, Gold ETFs have firmly positioned themselves as a key portfolio component during uncertain times. December’s numbers underline how gold moved from the sidelines to the centre of allocation decisions—quietly, steadily, and with purpose.
As markets remain unpredictable, Gold ETFs continue to tell a simple story through numbers—when uncertainty rises, gold finds its way back into portfolios.
Source: Moneycontrol
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