Despite the sharp moderation, Gold ETFs continued to see positive inflows for the second consecutive month.
Nehal Meshram, Senior Analyst at Morningstar Investment Research India, said the moderation could partly reflect profit-booking after the strong appreciation in gold prices and robust inflows during the first half of the year.
However, she said continued inflows indicated that investor appetite for gold remained intact amid geopolitical uncertainties, concerns over global growth and uncertainty around the global interest-rate trajectory.
Gold ETFs have attracted around ₹38,878 crore in net inflows between January and July 2026, according to Morningstar Investment Research India. This was more than four times the ₹9,277 crore attracted during the corresponding period in 2025.
The broader ETF category also saw inflows moderate in July. ETFs recorded net inflows of ₹9,512 crore in July, compared with ₹13,238 crore in June.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said Gold ETF flows had tapered after strong buying in the category.
She also said overall ETF flows had cooled but remained sizeable. Borthakur noted that the split between domestic ETFs and other categories, including silver ETFs, would provide a clearer picture of the flow trend.
Nitin Agrawal, CEO, Mutual Funds at InCred Money, said Gold ETFs had sustained positive inflows for a second consecutive month following profit-booking in May.
The moderation in Gold ETF flows came as gold prices remained elevated.
Colin Shah, Managing Director of Kama Jewelry, said geopolitical tensions, central-bank buying and movements in the US dollar were among the factors influencing gold prices.
