India’s Gold ETFs Record Historic Inflows in September, Leading Asia

India’s gold exchange-traded funds (ETFs) posted record-breaking inflows in September 2025, underlining strong investor appetite for the precious metal amid global market uncertainty. According to the World Gold Council, Indian gold ETFs attracted $902 million in net inflows during the month, marking a 285% increase from $232 million in August and the fourth consecutive month of positive inflows in 2025.

Record Inflows Drive India to Asia’s Top

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India became Asia's top destination for gold ETF inflows after the September spike. With $10.3 billion, the U.S. led the world in inflows, followed by the U.K. ($2.23 billion) and Switzerland ($1.09 billion), which ranked India fourth globally. China ($622 million) and Japan ($415 million) were the two largest contributors to the $2.1 billion in inflows that gold ETFs received throughout Asia during the month.

Inflows into Indian gold ETFs have topped prior yearly records, totalling $2.18 billion so far this year. In contrast, inflows totalled $1.29 billion in 2024, $310 million in 2023, and only $33 million in 2022. The increase is attributed by analysts to followings;

• Positive currency movements
• Declining domestic stocks
• A growing inclination towards safe-haven assets in the face of ongoing trade and geopolitical worries.

Global Context and Regional Performance

September ETF inflows were $17.3 billion worldwide. Germany ($811 million), Canada ($301 million), Italy ($234 million), Australia ($182 million), and South Korea ($165 million) made further noteworthy donations. A weaker U.S. currency, persisting trade and policy uncertainty, and forecasts of lower yields after the U.S. Federal Reserve's 25 basis point rate decrease in September all contributed to the high demand for gold ETFs, according to experts. The market is already pricing in one or two more rate cuts by the end of 2025, which will increase demand for gold investments.

Gold as a Safe-Haven Asset

With gold prices repeatedly touching record highs, investor interest remains robust. Even as global equities hover near historic peaks, many investors are positioning defensively, adding gold as a trusted hedge against potential market volatility. Analysts suggest that Indian ETFs’ historic inflows highlight both domestic and global confidence in gold as a secure investment option amid economic uncertainty.

Conclusion

India’s gold ETFs have demonstrated exceptional strength, posting record monthly and year-to-date inflows. September 2025 marked a historic milestone for the sector, reinforcing gold’s status as a preferred safe-haven asset in uncertain market conditions.