Gold ETF Inflows Drop 22% to ₹3,474 Crore in October as Silver Inflows Surge 56%
Inflows into Indian gold exchange-traded funds (ETFs) moderated in October 2026, falling nearly 22% month-on-month following a sharp correction in domestic bullion prices and operational curbs placed on large subscriptions. In contrast, silver ETFs experienced a dramatic surge in retail and institutional demand, according to monthly mutual fund data released by the Association of Mutual Funds in India (AMFI).
According to AMFI, net inflows into gold ETFs fell to ₹3,474.03 crore in October, down 21.94% from the seven-month high of ₹4,450.61 crore recorded in September. Meanwhile, silver ETFs attracted ₹3,092.22 crore in net investments during October, representing a steep 56.62% jump over September's figure of ₹1,974.32 crore. Combined, precious metals ETFs mobilized ₹6,566.25 crore in October, marking the third straight month where combined precious metals inflows stayed above the ₹6,000 crore threshold.
Drivers Behind the Shift in Precious Metal Flows
The deceleration in gold ETF inflows coincided with a notable downturn in domestic prices. On the Multi Commodity Exchange (MCX), gold futures contracted nearly 7% during the month, moving lower from roughly ₹1,46,200 per 10 grams in early October to approximately ₹138,419 per 10 grams by November 1.
The price weakness was influenced by global headwinds, including a strengthening US dollar, elevated US interest rate expectations, and geopolitical developments in West Asia. Furthermore, several asset management companies (AMCs) moved to halt fresh bulk subscriptions or temporarily restrict inflows into gold Fund of Funds (FoFs) following regulatory scrutiny aimed at curtailing sudden surges in gold imports that could exert pressure on the Indian rupee.
Conversely, silver witnessed accelerating inflows as investors used the price volatility to accumulate units at lower levels, encouraged by the dual appeal of silver as an inflation hedge and an essential raw material for clean energy and industrial sectors. The surge in silver ETF allocations narrowed the funding gap between gold and silver funds to its closest spread this year.
Structural Adoption Remains Robust
Despite the month-on-month cooling in gold ETF inflows, cumulative trends highlight growing structural demand for electronic gold among Indian savers.
Key Takeaways from the AMFI Release:
- Year-to-Date Gold ETF Records: Gold ETFs have attracted approximately ₹49,399 crore between January and October 2026, easily surpassing the ₹42,961 crore recorded during the entire calendar year 2025.
- Equity ETFs Post Strong Gains: Inflows into equity ETFs advanced by more than 30% month-on-month to ₹12,973.78 crore in October, up from ₹9,959.96 crore in September.
- Turnaround in Debt ETFs: Debt ETFs bounced back into positive territory, clocking net inflows of ₹751.11 crore compared to net outflows of ₹883.94 crore in September.
- Overall Mutual Fund Recovery: The Indian mutual fund industry as a whole reported total net inflows of ₹1.73 lakh crore (₹1,73,839.91 crore) in October, reversing net outflows of ₹1.33 lakh crore in September. Total industry assets under management (AUM) expanded to ₹83.39 lakh crore.
- SIP Inflows Moderate Slightly: Monthly collections via systematic investment plans (SIPs) eased marginally to ₹32,160 crore in October from ₹32,490 crore in September.
Industry market watchers pointed out that while short-term price pullbacks and administrative subscription caps tempered immediate inflows into gold funds, digital and ETF allocations for precious metals have evolved beyond tactical trades into permanent strategic allocations for domestic portfolio diversification.
