Gold ETF inflows had already begun strengthening toward the end of last year, with Rs 8,363 crore flowing into the category in September, followed by Rs 7,743 crore in October and Rs 3,742 crore in November before the sharp spike in January.
Gold has increasingly become a preferred diversifier during uncertain market phases. Vikas Gupta of OmniScience Capital said, “The continued inflows into gold ETFs and multi-asset strategies indicate that investors are responding to recent strong performance in these segments and are looking for diversification amid geopolitical and market uncertainties.