Inflows in Gold ETF hit 16-month high at Rs 1,028 cr in Aug
Association of Mutual Funds in India (Amfi) showed.
Apart from inflow, the asset base of Gold ETFs and investors' account or folio numbers increased in the period under review.
According to data, gold-linked ETFs have seen an inflow of Rs 1,028 crore in August. This came following an inflow of Rs 456 crore in the segment in July.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details»
Before that, Gold ETF saw inflow to the tune of Rs 298 crore during the April-June period after three quarters of consecutive outflow. The category saw a withdrawal of Rs 1,243 crore in the March quarter, Rs 320 crore in the December quarter, and Rs 165 crore in the September quarter.
The month of August witnessed the highest monthly inflow into Gold ETFs since April 2022 when the category attracted Rs 1,100 crore on the back of the Russia-Ukraine war.
Flows into Gold ETFs have been subdued since then as the US Federal Reserve embarked on its tightening cycle.
«As the end to the Fed's tightening cycle is now coming close, prospects for gold are looking good. The metal has held its ground despite US yields and the US dollar being on an upward trajectory lately. A potential US recession, central bank gold buying, geopolitical tensions, rising US debt levels are all supporting interest in the precious metal,» Ghazal Jain, Fund Manager — Alternative Investments at Quantum Mutual Fund, said.
Moreover, gold prices in recent times have come off from its all-time high levels, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year, Melvyn Santarita, Analyst — Manager Research at Morningstar India, said.
«With the continued hike in interest rates
