Summary of this article
India's gold ETFs experienced a significant surge in July 2025, with inflows of $156.3 million (1.4 tonnes), bringing total holdings to 68.1 tonnes. This strong performance occurred as domestic gold prices hit a historic high of ₹100,130 per 10 grams on July 23, with year-to-date gains now outpacing global benchmarks. According to the World Gold Council, India led regional inflows alongside Japan, while globally, gold ETFs added $3.21 billion, reaching a three-year high in total holdings. The rally was driven by inflation fears and geopolitical tensions, cementing gold's role as a key portfolio diversifier for investors.
India’s gold exchange-traded funds (ETFs) added $156.30 million in July 2025, equivalent to 1.40 tonnes of the metal, according to the World Gold Council’s (WGC’s) Gold ETF Commentary – July 2025. This took the total holdings in Indian gold-backed funds to 68.10 tonnes, with year-to-date inflows standing at $1.10 billion (10.6 tonnes). Additionally, the yellow metal had a phenomenal run in July, with gold prices rising to a new peak of $3,299 per ounce, extending its year-to-date gains to a solid 26 per cent..
WGC said in its report that this momentum was supported by a convergence of factors, including escalating inflation expectations and renewed geopolitical friction, particularly around international trade tariffs. While the strengthening dollar acted as a headwind, its impact was not enough to derail gold's upward trajectory.
The report said these inflows came even as domestic prices touched unprecedented levels.
Gold in India closed at Rs 98,068 per 10 grams in July, up 2.50 per cent from June. On July 23, prices hit an all-time high of Rs 100,130 per 10 grams. The year-to-date gain now stands at 29.2 per cent, outpacing the 26.4 per cent increase in US dollar terms, the WGC report further said.
Regional Positioning in Asia
Asia’s gold ETFs posted modest net inflows of $93.10 million in July. Japan led with $215 million, followed by India’s $156 million. China saw the sharpest outflows at $325.20 million, driven by improved equity sentiment after stronger-than-expected Q2 GDP growth.
India’s share of Asian gold ETF holdings now exceeds 21 per cent, based on the region’s total of 321.5 tonnes at the end of July.
Western Markets Dominate
The report said this sustained enthusiasm for gold was clearly visible in the behaviour of ETF investors.
Globally, gold ETFs added $3.21 billion in July, or 22.80 tonnes, lifting total holdings to 3,638.60 tonnes the highest since August 2022. Assets under management (AUM) reached a record $386.40 billion.
North America and Europe drove most of the gains. North America attracted $1.45 billion (12.5 tonnes), taking year-to-date inflows to $22.11 billion. Europe added $1.76 billion (10.9 tonnes), with the UK alone contributing $879 million.
Trading Volumes and Futures
Global gold market trading volumes averaged $297 billion per day in July, up 2.30 per cent from June. Over-the-counter trades accounted for $154 billion, while exchange volumes rose to $137 billion, buoyed by COMEX activity.
On the futures side, COMEX managed money net longs climbed 12 per cent month-on-month to 676 tonnes. Despite gold trading near record highs, positioning remained below past peaks relative to prices, leaving room for further accumulation, the report added.
