India Gold ETF Inflows Slow To $565 Million In February: World Gold Council

India’s gold exchange-traded funds (ETFs) attracted net inflows of $565 million in February, marking a 77% decline compared with the previous month, according to data released by the World Gold Council. Despite the slowdown, the country continued its run of consistent inflows, recording the eighth consecutive month of positive investment in gold-backed funds.

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The World Gold Council said the moderation followed elevated inflows in the previous two months, which had averaged around $2 billion. Early in February, some of the larger gold funds recorded redemptions that were likely linked to profit-taking when gold prices briefly declined. However, these outflows were gradually offset later in the month, resulting in a net inflow by the end of February.

Gold ETF Investment Trends In India

The interest rate received by investors for investing in gold has remained stable. According to the World Gold Council, inflows into India’s gold ETFs have strengthened significantly compared with previous years.

The data from the council reveals that the total inflows received by 2026 have already reached $3.06 billion. This has taken the total assets under management for gold ETFs in India to near $20 billion.

For comparison, inflows into Indian gold ETFs stood at $4.69 billion during 2025. The investment levels in the earlier years were also recorded at much lower levels, with investment levels of $1.29 billion in 2024, $310 million in 2023, and $33 million in 2022.

The council also observed that the rise in interest in gold investment products has been further supported by the changes in the regulations made by the Securities and Exchange Board of India. The changes in the mutual fund scheme categorization framework allow mutual funds the flexibility to increase their investments in gold and silver instruments.

Apart from March and May, the majority of the months in 2025 recorded positive investor flows in gold ETFs in India, indicating the continued interest of investors in gold-based financial products.

Global Gold ETF Flows In February

The moderation in ETF flows was also visible in global markets during February, according to the World Gold Council.

North America recorded inflows of $4.69 billion during the month, which was lower than the $6.79 billion recorded in January. Europe reported net outflows of $1.79 billion, compared with inflows of $1.97 billion in the previous month.

Asia registered inflows of $2.35 billion in February, down 75.6% from $9.63 billion recorded in January.

Within Europe, the United Kingdom accounted for the majority of redemptions, recording outflows of about $1.9 billion. Germany also reported outflows of around $291 million during the same period.

According to the World Gold Council, most of the outflows in Europe occurred on January 30 and February 2 in United Kingdom-listed funds and were linked to redemptions following a late-January decline in precious metal prices.

Global Gold Holdings Reach Record Levels

Despite the moderation in monthly flows, total global gold ETF holdings continued to rise. The World Gold Council reported that global holdings increased by 26 tonnes during February, reaching a record 4,171 tonnes.

At the same time, higher gold prices lifted total global assets under management in gold ETFs to a record $701 billion.

The World Gold Council noted that geopolitical developments, currency movements and broader market conditions have continued to influence investment flows into gold-backed funds globally, while India maintained a consistent trend of inflows during the period.