Investment demand for gold remained strong in India with gold-backed ETFs seeing inflows for the fifth month in a row. This comes despite weak retail demand amid the coronavirus pandemic.
Gold ETFs saw an inflow of ₹908 crore in August, the fifth month in a row, taking the total inflows into during the January-August period to ₹5,356 crore.
In July, investors had pumped ₹921 crore into gold ETFs on a net basis.
The inflows meant assets under management (AUM) of gold ETFs climbed to ₹13,503 crore at the end of August.
Month-wise, investors put in a net ₹202 crore in January, ₹1,483 crore in February, but withdrew ₹195 crore in March on profit-booking.
Inflows resumed in April at ₹731 crore, followed by ₹815 crore in May and ₹494 crore in June.
Gold has emerged as one of the best performing asset classes this year, bolstered by the safe-haven appeal amid the coronavirus pandemic.
In India, gold prices are up about 30% so far this year despite the recent correction. In futures markets, gold prices are currently ruling at ₹51,000 per 10 gram, down from record highs of ₹56,000 hit last month.
Gold ETFs invests in physical gold and aims to track the domestic spot price of gold as closely as possible. Gold ETF units are listed on stock exchanges and can be easily traded in demat form. Typically, each unit of the scheme is approximately equal to 1 gram of gold. (With Agency Inputs)