India’s gold ETFs draw $233 million in August, mark third month of inflows  

Analysts say persistent allocations point to gold’s appeal as a hedge against equity weakness and global trade and geopolitical risk.

Gold prices have surged nearly 35 percent this year, touching an all-time high of $3,500 per ounce on April 22 after a stock-market slump triggered by former US President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell.

Concerns over the Fed’s independence deepened as Trump sought to remove Governor Lisa Cook, pushing investors toward safe-haven assets. Markets now assign a 91 percent probability to a 25-basis-point rate cut at the Fed’s September 17 meeting, reinforcing bullion’s bullish tone.

Globally, physically backed gold ETFs added $5.5 billion in August, extending a three-month inflow streak. North American funds led with $4.11 billion, followed by Europe with $1.95 billion, while Asia posted net outflows of $496 million. Among Asia, China saw the second straight month of withdrawals—$834 million in August after $325 million in July.

Strong inflows globally and firmer prices lifted global gold ETF assets under management by 5 percent to a record $407 billion, with holdings climbing to 3,692 tonnes, just 6 percent below the November 2020 peak.

Gold ETFs, which mirror physical gold prices and trade on stock exchanges, offer investors liquid, low-cost exposure without storage concerns—an increasingly attractive proposition in volatile markets.