Gold ETF outflows ease in April despite all-time high prices; AUM jumps 87% YoY #NewsETFs

Gold Exchange Traded Funds (ETFs) saw a modest net outflow of ₹5.82 crore in April 2025, an improvement from March’s outflow of ₹77.21 crore. This reversal comes despite gold prices staying near all-time highs.

Experts say the reduced outflow indicates the profit-booking phase may be tapering off.

Many investors appear to be returning cautiously, viewing gold as a hedge against inflation and geopolitical uncertainty.

“The reversal, though subdued, suggests that profit-booking has slowed, with some investors selectively re-entering amid global uncertainties,” said .Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India

Gold ETFs’ assets under management (AUM) rose 4% month-on-month and 87% year-on-year, according to AMFI data.

The uptick in AUM signals sustained investor interest even as short-term flows fluctuated.

“The improvement in flows could be attributed to renewed concerns over inflation and volatile geopolitics,” Meshram added. “Stabilising gold prices towards the end of April may have encouraged fresh allocations from investors seeking both upside and diversification.”

In March, Gold ETFs broke a 10-month streak of steady inflows. Investors pulled out ₹77 crore after pumping in ₹1,980 crore in February.

The sharp swing was driven by high gold prices and pre-financial year-end portfolio rebalancing.

Despite these fluctuations, experts say gold ETFs remain resilient. The overall sentiment is still positive, with investors viewing gold as a long-term strategic asset.

“Given equity market swings, currency instability, and shifting global policy cues, gold ETFs are likely to remain relevant as a safe-haven bet,” Meshram said.