Gold Exchange Traded Funds (ETFs) recorded a net outflow of ₹725 crore in May, ending a 13-month streak of inflows, according to data from the Association of Mutual Funds in India (AMFI). This marks the first month of redemptions after a prolonged period of strong investor interest in gold ETFs, the data showed.
The net outflow in May reflects a moderation in investor appetite for gold ETFs, which had consistently attracted inflows over the past year. Experts cited profit booking as a key reason behind the redemptions, suggesting that investors were locking in gains after a sustained rally in gold prices. Silver ETFs also experienced continued outflows during the same period, indicating a broader shift in precious metals investment sentiment.
The outflow from gold ETFs comes amid a complex market environment where investors are balancing inflation concerns, interest rate expectations, and geopolitical risks. Despite the redemptions, market sentiment towards gold remains largely intact, with many viewing the outflows as a temporary correction rather than a fundamental shift. This trend contrasts with the steady inflows seen in previous months, highlighting the volatile nature of commodity-linked investments.
The latest AMFI data on gold and silver ETFs was released on June 12, 2026, providing a clear snapshot of changing investor behavior in the precious metals segment. The net outflow of ₹725 crore in gold ETFs is a significant development, marking a turning point after more than a year of sustained inflows.