Investments in physically-backed gold exchange-traded funds (ETFs) by Indian investors ranked third highest globally in October, even as investors in the UK and Germany opted to withdraw their funds, according to data from the World Gold Council.
Between January 1 and October 31, Indian ETF investments were the fifth highest, with one-third of these inflows occurring in October alone. As of November 7, total ETF investments in India reached $2.91 billion, with October inflows amounting to $849.8 million.
However, data from the first week of November indicated that investors began to withdraw their investments, with outflows of $77.6 million from the US and $38.3 million from other countries. Specific data regarding Indian investments during that period is not yet available.
The overall trend in global gold ETF investments corresponds with fluctuations in gold prices, which have risen nearly 60% this year. The price of gold peaked at a record high of $4,381.58 per ounce on October 17 but subsequently declined to $4,083.60 as of the weekend. In India, gold prices reached ₹1,30,874 per 10 grams on October 17, before falling to ₹1,24,794.
In October, the United States experienced the most substantial inflows into gold ETFs at $6.33 billion, followed by China with $4.51 billion, and India securing the third spot. Japan recorded investments nearing $500 million. Conversely, investors in the UK exited their positions, leading to outflows of $3.5 billion, while Germany saw redemptions of $1.17 billion. Similar withdrawals were noted in South Africa, Italy, and Turkey.
As of November 7, US investments in gold ETFs totaled over three times that of China, with year-to-date inflows of $42.54 billion compared to China’s $12.95 billion. Switzerland followed with $3.94 billion in inflows, while the UK and India recorded $3.02 billion and $2.91 billion, respectively.
The World Gold Council highlighted that physically-backed gold ETFs serve as a crucial source of gold demand, embraced by both institutional and individual investors as part of diversified investment portfolios. The demand for gold in various forms has surged over the past two years amid rising geopolitical tensions and trade uncertainties, particularly between the US and countries like China, Brazil, and Canada.
In 2025, gold ETF investments experienced the strongest influx since 2020, with overall investment demand for gold bars, coins, and ETFs totaling 537 tonnes in the July-September quarter, of which ETFs accounted for 222 tonnes. Cumulatively, total demand now stands at 676.6 tonnes.
As of November 7, gold holdings by ETFs reached 3,895 tonnes, just shy of the peak of 3,929 tonnes recorded in November 2020. The World Gold Council noted that demand for gold ETFs has significantly contributed to the metal’s price performance in 2025, with inflows accelerating across regions since September. In India, ETF investments increased in September, driven by the price increase and the festive season, reflecting consistent demand throughout the September quarter.
Published on November 16, 2025.
