AMFI Data: Gold ETF inflows rebound to ₹3,443 crore in June after May outflows, here's what changed

Just a month after investors pulled money out of gold exchange-traded funds (ETFs), the category witnessed a sharp turnaround in June. Gold ETFs attracted net inflows of ₹3,443.23 crore during the month, reversing the ₹725.04 crore net outflow recorded in May, according to the latest data released by the Association of Mutual Funds in India (AMFI).

The reversal comes after May's outflows, which industry experts attribute largely to profit booking following a sharp jump in domestic gold prices.

"The May 2026 outflow was heavily triggered by the government's steepest-ever customs duty hike on gold from 6% to 15%, which led to a spike in domestic prices and prompted investors to lock in profits. Outflows were likely driven by profit-taking following the mid-May import duty hike that pushed domestic gold prices and the traded price of ETFs sharply higher. Consequently, investors reduced their overall exposure amid this price volatility," said Umesh Sharma, CIO – Debt, The Wealth Company Mutual Fund.

According to experts, the correction in gold prices after the duty-driven rally encouraged investors to return to the category.

"As international and domestic gold prices cooled off in the weeks following the initial duty-driven rally, investors used the correction as an opportunistic entry point. Gold ETFs attracted ₹3,443 crore in June, suggesting the dip was short-lived and investor interest in the category remains intact. The sharp surge in inflows reflects continued appetite for long-term portfolio diversification alongside rising geopolitical tensions," said Nehal Meshram, Senior Analyst, Morningstar Investment Research India.

Morningstar noted that the June recovery suggests the weakness seen in May was temporary rather than a change in investor sentiment towards gold.

The June rebound also capped a strong first half of the calendar year for Gold ETFs.

According to Morningstar, Gold ETFs recorded cumulative net inflows of around ₹37,319 crore during the first half of CY2026, substantially higher than the ₹8,021 crore mobilised during the same period last year.

The research firm said the increase reflects sustained demand for safe-haven assets amid elevated geopolitical uncertainty, concerns over global economic growth and uncertainty around the path of global interest rates.

"While inflows were heavily front-loaded, led by the exceptionally strong collections witnessed in January, the first-half mobilisation highlights the growing role of gold within investor portfolios as a strategic allocation and store of value," Meshram said.

She added that the renewed inflows in June indicate investors continue to maintain a favourable view on gold while balancing growth-oriented investments with defensive portfolio allocations.

According to Sharma, the June inflows indicate that investors continue to view Gold ETFs as an important component of long-term portfolios, with the category benefiting from demand for diversification even after the volatility witnessed in May.

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Log in to our website to save your bookmarks. It'll just take a moment.

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.