Gold ETFs account for around only 40 per cent of gold investment demand. | Photo Credit: Just_Super

As the country looks for ways to bring down its imports to protect the rupee, the attention has turned on surge in gold imports in the last fiscal. While a large part of gold imports is led by jewellery consumers, gold demand from exchange-traded funds has also witnessed a surge over the past year.

Data from the World Gold Council shows that assets under management of gold ETFs listed in India increased from $7.2 billion in April 2025 to $18.4 billion in May 2026. Given the mandate to back their investments with physical gold, ETFs have increased their gold holding from 65.3 tonnes to 116.7 tonnes, in the same period, registering an increase of 79 per cent.

Why the increase

Gold prices have had a stellar run over the last two years, more than doubling from around $2,100 per ounce in April 2024. Heightened uncertainty caused by Trump’s reciprocal tariffs and the ongoing Iran war has been the prime reason behind causing an increase in gold prices.

In times of sharp price increases, demand from jewellery buyers typically comes down while investment demand surges. According to the World Gold Council, demand for gold jewellery dropped from 563 tonnes in 2024 to 440 tonnes in 2025. But in the same period, holdings of Indian gold ETFs have recorded a sharp increase. Total demand from global gold exchange-traded funds amounted to 794 tonnes in 2025, driving the prices higher.

Interestingly, WGC data shows that investment in gold could be in the form of gold bars and coins, besides gold ETFs. Gold ETFs account for around 40 per cent of gold investment demand.

Inflows continue

Inflows have continued into India’s top gold ETFs, resulting in continued demand for gold from them. Nippon India Gold BeES, which holds 36.5 tonnes of gold, has witnessed inflows amounting to $1.1 billion so far in 2026. ICICI Prudential Gold iWIN ETF (gold holding of 17.3 tonnes) received $673 million this year, while SBI ETF Gold (gold holding of 16.1 tonnes) received $522 million.

Published on May 13, 2026