WGC: Stock Market Volatility Drives Investments in Gold ETFs in India

Volatility in the equity market has boosted investments in the gold Exchange Traded Funds in India. The inflows in the financial instrument occurred for the eighth consecutive month in the country, World Gold Council reported.

As of now, the price of gold for 10 grams (24k) in Delhi stands at ₹79,830.00.

Notably, uncertainty in the equity market, buoyed by escalating geopolitical risks have forced domestic investors to park their funds in gold as it’s considered to be a safe-haven asset. Further rate cuts by the central banks worldwide have fuelled optimism in the yellow metal.

Though some minor blips were reported, total assets under management surged by 26% to clock at record USD 271 billion.

Asian peers including India played a key role in boosting global gold ETF inflows.

India became the second-largest buyer of yellow metals as total gold holdings surged to 876 tonnes.