Gold ETFs see record inflows as precious metals weather sharp volatility

India’s gold exchange-traded funds attracted record net inflows of $2.48 billion in January 2026, marking the eighth consecutive month of positive flows, according to data from the World Gold Council. The month’s inflows nearly doubled the $1.25 billion recorded in December 2025, representing a 98.61 per cent month-on-month jump.

The January inflows alone accounted for 12.52 per cent of the country’s total gold ETFs’ assets under management. “Gold ETF flows in January have doubled over December. January saw record single-month flows of nearly 24,000 crores, taking the FYTD number to approximately 61,000 crores,” according to market data.

Varun Gupta, CEO of Groww Mutual Fund, noted the broader trend. “Despite a volatile month for equity markets, mutual fund AUM expanded in January, highlighting the resilience of investor participation,” he said. “Key standout, however, were gold ETFs, with AUM rising nearly 50 per cent and monthly inflows exceeding those into the entire equity segment, pointing to the increasing financialisation of gold as an investment asset.”

The surge in ETF inflows comes as precious metals experience significant price swings. COMEX gold is currently trading near the $4,900–$5,100 zone after a sharp correction from recent highs above $5,500–$5,600. On MCX, gold futures are trading near the ₹1,55,000–₹1,60,000 zone, following consolidation after the correction from all-time highs around ₹1,80,000–₹1,81,000.

Silver has witnessed even more dramatic volatility, with COMEX silver trading near the $78–$83 zone after a sharp correction from record highs above $121. MCX silver futures are trading near the ₹2,50,000–₹2,70,000 zone after falling from record highs around ₹4,20,000.

Akshat Garg, Head of Research & Product at Choice Wealth, explained the recent silver decline. “Silver has come off mainly because it had run up too fast in a short period. Over the past year, prices had moved sharply higher and a lot of optimistic positioning had already been built in,” he said. “Silver, by nature, reacts more sharply than gold. It is a smaller and thinner market, so when selling starts, the fall looks steeper.”

However, Garg advised against panic. “There’s no need for panic. Silver is a volatile asset and sharp ups and downs are part of the journey. One correction does not change the long-term relevance of silver, but it does remind investors why position sizing matters,” he said.

Rochan Pattnayak, Chief Investment Officer at Choice AMC Limited, provided the current market assessment. “Gold and silver extended their rebound on Monday, with MCX gold trading around ₹1.56–1.58 lakh per 10 grams and silver up over ₹10,000, supported by a softer US dollar and steady safe-haven demand,” he said.

Commodities advanced across the board, led by silver gaining 7 per cent, gold rising 2 per cent, and oil climbing 1 per cent on geopolitical concerns, keeping overall market sentiment positive.

With the RBI maintaining interest rates, Dr. Ravi Singh, Chief Research Officer at Master Capital Services, suggested diversification. “In the current environment, where equities are volatile and gold prices are swinging sharply, bonds can act as an anchor in the portfolio,” he said. “At this stage, it is better to stay with high-quality bonds and medium-term maturity papers rather than taking big bets on long-duration bonds.”

Published on February 10, 2026