The World Gold Council said investment demand remained supportive during the period of price correction. Lower prices attracted investors seeking strategic exposure to gold, while the subsequent rebound appears to have revived interest in the precious metal.
Current gold prices
Gold prices continued their sharp climb in India, with 24K gold rising ₹152 per gram to ₹16,309, while 22K gold gained ₹140 to ₹14,950. The rally has been particularly strong, with 24K gold surging ₹81,200 per 100 grams in just three days. A weaker US dollar, expectations of a softer Federal Reserve stance, central bank buying and renewed safe-haven demand are supporting the rally, while the upcoming festive and wedding season could further boost physical demand.
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Gold ETF inflows remain positive
Data from the Association of Mutual Funds in India (AMFI), cited by the World Gold Council, showed that gold ETFs recorded ₹1,560 crore in net inflows in July. However, this was 55% lower month-on-month, suggesting that the pace of investment moderated after stronger inflows earlier.
Despite the moderation, gold ETF holdings increased by 1 tonne to 120 tonnes in July. Assets under management rose 2% month-on-month to ₹1.73 lakh crore. The positive flow trend continued into August, with an estimated ₹1,179 crore flowing into gold ETFs during the first two weeks of the month.
| Gold ETF indicator | Latest data |
|---|---|
| Net inflows – July 2026 | ₹1,560 crore |
| Net inflows – First 2 weeks of August | ₹1,179 crore |
| July month-on-month change in inflows | Down 55% |
| Gold ETF holdings – July | 120 tonnes |
| Increase in holdings | 1 tonne |
| Gold ETF AUM – July | ₹1.73 lakh crore |
| Monthly change in AUM | Up 2% |
| New folios added in July | 57,000 |
| Total gold ETF accounts | 1.253 crore |
| Domestic gold price gain – first 2 weeks of August | Nearly 7% |
The numbers point to continued investor participation even after gold prices moved higher. Gold ETFs offer investors exposure to gold through financial markets, while avoiding the need to hold physical bullion.
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1.25 crore gold ETF accounts now
The investor base for gold ETFs is also expanding. A further 57,000 folios were added during July, taking the total number of gold ETF accounts to 12.53 million, or around 1.25 crore accounts.
This growth comes alongside a recovery in physical gold demand. The World Gold Council said jewellery demand strengthened as consumers viewed recent price movements as a buying opportunity. Deferred purchases returned to the market, while manufacturers reportedly received higher order flows and jewellers increased inventory ahead of the festive season.
The broader recovery in gold demand is also visible in imports. Gold imports rebounded sharply in July, with import value rising to US$4.16 billion from US$1.97 billion in June. Estimated import volumes increased to 40–45 tonnes from 20 tonnes in June, signalling stronger physical demand and inventory replenishment.
The World Gold Council expects improving demand conditions to support a stronger festive season. However, it noted that elevated prices could continue to influence jewellery purchases, while investment demand remains supportive.
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