Gold ETF inflows jump 71% to ₹4,451 crore in September despite falling gold prices. What drove the surge?

Gold ETFs attracted ₹4,451 crore in Sept, the highest monthly inflow of FY27 so far, with net investments rising 71% from August, according to AMFI data. Experts attribute the surge to geopolitical uncertainty, inflation concerns, gold’s safe-haven appeal and expectations of further price gains.

Gold ETFs attracted ₹4,451 crore in net inflows in September 2026, their highest monthly inflow so far in FY2026-27, as investors looked to diversify their portfolios amid geopolitical uncertainty and concerns over inflation. The inflow was up 71% from ₹2,597 crore in August, according to data from the Association of Mutual Funds in India (AMFI).

The increase came even as gold prices corrected during the month, suggesting that investors may have used the dip to increase their exposure to the yellow metal. However, expectations of further price gains may also be influencing investment decisions, raising questions about whether investors are diversifying their portfolios or chasing recent returns.

Adil Chacko, executive director at Anand Rathi Wealth, said geopolitical uncertainty, inflation concerns and gold’s role as a hedge were key factors behind the September inflows.

“With tensions in West Asia and crude oil prices remaining elevated, demand for gold has naturally increased,” Chacko said. He also pointed to a rise of more than 25% in India VIX from its September lows, indicating heightened market uncertainty that can encourage investors to seek hedges.

Gold price correction may have supported inflows