Gold Exchange Traded Funds witnessed exceptional performance in the March 2026 quarter, with inflows reaching ₹31,561 crore, representing a nearly six-fold increase compared to ₹5,654 crore in the same period last year, according to data from the Association of Mutual Funds in India (AMFI) cited by PTI. On a sequential basis, inflows rose 36% to ₹23,132 crore, demonstrating continued investor interest despite some moderation towards the end of the quarter. March alone recorded inflows of ₹2,266 crore, lower than February's ₹5,255 crore and January's ₹24,040 crore. As reported by ABP Live, Nehal Meshram, Senior Analyst at Morningstar Investment Research India, noted that while inflows moderated month-on-month, investor interest in gold-backed products remains intact.
Gold prices have entered a volatile consolidation phase following recent geopolitical developments, with the precious metal experiencing significant fluctuations amid ongoing uncertainties. According to latest reports, gold prices touched ₹1,51,500 per 10 grams on April 13th before recovering to ₹1,51,983 by close, while silver prices fell 1.14% to ₹2,40,499 per kilogram. The volatility stems from the recent US-Iran ceasefire, which initially triggered safe-haven demand but was followed by dollar strength and profit-taking. Analysts note that the stronger US dollar, currently near 98.38 on the DXY index, and rising crude oil prices are acting as significant headwinds, with crude oil prices exceeding $100 per barrel due to Iran conflict-related energy costs.
The strong inflows have resulted in substantial growth in gold ETF assets under management, which rose to ₹1.71 lakh crore by March 2026 from ₹58,888 crore a year earlier, as reported by ABP Live. The number of investor accounts has also surged dramatically, with folios increasing to 1.24 crore from 69.69 lakh during the same period. Umesh Sharma, CIO-Debt at The Wealth Company Mutual Fund, explained to ABP Live that the moderation in March inflows may be linked to improving relative valuations in equities, which could have led investors to rebalance portfolios. He emphasized that positive flows in March indicate that gold continues to serve as a diversification tool amid market volatility.
Jewellery retailers are witnessing encouraging traction ahead of Akshaya Tritiya, with Suvankar Sen, CEO and Managing Director of Senco Gold Ltd, reporting upbeat customer sentiment heading into the festival, according to ABP Live. He highlighted that relatively stable gold prices and the cultural importance of Akshaya Tritiya are driving purchases, particularly in lightweight jewellery categories suited for daily wear. Sen noted growing demand across rings, earrings, chains and bangles, along with increasing interest in men's jewellery such as chains and bracelets. The company expects overall growth of around 15-20% compared to last year, with early demand from wedding buyers also picking up ahead of the summer season.
Despite current volatility, gold's fundamental appeal as a secure asset remains strong, supported by structural demand drivers including consistent central bank purchases and positive ETF inflows. Global central banks have been major buyers, with net purchases estimated around 850 tonnes in 2025, continuing a trend driven by diversification away from the US dollar and inflation hedging. Renisha Chainani, head of research at Augmont, highlighted these key drivers along with expected strong retail demand for Akshaya Tritiya. Analysts forecast gold prices could average above $5,000 per ounce by 2026-27, with structural demand from central banks anticipated to continue supporting prices throughout 2026. The future direction will depend on the interplay between dollar strength, persistent inflation, and ongoing geopolitical uncertainties.
