Gold ETFs see high inflow in November

Chennai: Inflationary concerns and return of pandemic fears saw gold exchange traded funds in November record the highest inflow of the fiscal.

Gold ETFs last month saw a net inflow of Rs 682 crore, highest in the fiscal, as per the Association of Mutual Funds of India data. The second highest net inflow was recorded in April at Rs 680 crore when the Covid cases surged.


In July, the ETFs had witnessed a net outflow of Rs 61 crore. However, the situation improved in the three subsequent months as the net inflows of Rs 23 crore, Rs 445 crore and Rs 303 crore were recorded.

The higher inflow saw the assets managed by the funds touching Rs 18,104 crore in November against Rs 17,320 crore in October. The total AUM of the 11 gold ETFs stood at Rs 15,628 crore at the end of April and have grown 15.8 per cent in the past seven months.

“Gold had made multi-week highs in November as the daily Covid caseloads were rising in some of the European countries. The inflation theme in some of the key economies too have been supporting gold prices,” said Ajay Kedia, MD, Kedia Commodities.


In November, global gold ETF holdings too came off year-to-date lows as investment demand for larger gold ETFs returned amid heightened market volatility. Global gold ETFs had their first month of inflows since July, as per the World Gold Council.

Gold-backed ETFs saw net inflows of 13.6 tonnes or $838 million in November, the first month of positive flows since July. Global gold ETF holdings rebounded from year-to-date lows, increasing to 3,578 tonnes or $208 billion as investment demand for larger gold ETFs returned amid decades-high inflation and heightened market volatility. 


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