India’s Gold Exchange-Traded Funds (Gold ETFs) recorded a historic surge in investment in January 2026, marking one of the strongest months ever for the segment. According to data released by the World Gold Council, Indian Gold ETFs attracted $2.49 billion in net inflows during the month — a massive 98% increase compared to December 2025.

This marks the eighth consecutive month of positive inflows, signaling growing investor confidence in gold as a safe-haven asset amid global economic uncertainty.

Strong Investment Momentum Throughout 2025

Except for March and May 2025, every month in 2025 saw net inflows into Gold ETFs in India. The total inflow for the year stood at $4.68 billion, representing a 262% jump compared to $1.29 billion in 2024.

A quick look at historical trends highlights the rapid rise in investor interest:

• 2023: ~$310 million inflow

• 2022: ~$33 million inflow

This sharp growth reflects gold’s rising appeal among both retail and institutional investors.

Global Gold ETFs Witness Record-Breaking Inflows

India’s performance mirrors a broader global trend. In January 2026, global Gold ETFs recorded inflows of $19 billion, the highest monthly inflow ever recorded.

Key contributing factors included:

• Heavy buying in physically backed Gold ETFs

• A nearly 14% rise in global gold prices

• A surge in total Assets Under Management (AUM) to a record $669 billion, reflecting a 20% monthly increase

Global Gold Holdings Reach an All-Time High

Global Gold ETF holdings increased by 120 tonnes in January, pushing total holdings to 4,145 tonnes — the highest level on record.

This trend underscores investors’ growing preference for gold as protection against inflation, geopolitical risks, and financial market volatility.

Asia, North America, and Europe Drive ETF Demand

Asia saw particularly strong demand, with $10 billion in Gold ETF inflows in January, marking the largest-ever monthly inflow for the region and the fifth straight month of growth.

Meanwhile:

• North America played a major role in supporting global demand

• Europe experienced increased inflows amid rising geopolitical and trade tensions

• All major regions reported net positive flows during January 2026

Gold Price Volatility Did Not Deter Investors

Despite increased volatility toward the end of January — triggered by the nomination of Kevin Warsh as the new US Federal Reserve Chair — investor confidence in Gold ETFs remained strong.

Although gold prices corrected sharply after a strong monthly rally, ETF inflows stayed positive even on the final trading day of the month, indicating resilient investor sentiment.

Why Investors Are Increasing Gold ETF Allocations

Market analysts cite several reasons behind the growing popularity of Gold ETFs:

• Protection against inflation and currency fluctuations

• Rising geopolitical and economic uncertainty

• Stock market volatility

• Concerns over interest rate policies

• High liquidity and convenience compared to physical gold

Outlook: Will Gold ETF Investments Continue Rising?

Experts believe that Gold ETF inflows could remain strong if:

• Global economic instability persists

• Inflationary pressures remain elevated

• Geopolitical tensions intensify

• Interest rate expectations stay uncertain

However, short-term price fluctuations may continue due to global monetary policy developments and market sentiment.

Conclusion

January 2026 marked a milestone month for India’s Gold ETF market, highlighting gold’s growing role as a preferred investment asset. The sustained rise in inflows reflects strong investor confidence in gold’s ability to provide stability and long-term value.

As global uncertainty continues, Gold ETFs may remain a key component of diversified investment portfolios.