Gold ETFs surge while jewellers defend physical gold for Dhanteras
Record inflows into gold exchange-traded funds contrast with continued demand for physical jewellery among Indian families in the UAE.
At a glance
- Gold ETFs recorded $31 billion in inflows during Q3, with $10 billion entering physically backed funds in September alone
- Gold ETF holdings reached a record 4,256 tonnes despite price volatility ranging from 14 per cent gains to 13 per cent losses throughout 2026
- Indian gold funds attracted $4.71 billion year-to-date, ranking the country third globally for ETF inflows
- Jewellery designers maintain that physical gold remains preferred for cultural occasions like Dhanteras among Indian families in the UAE
Global gold ETFs attracted a record $31 billion in the third quarter, with physically backed funds receiving $10 billion in September alone, according to the World Gold Council. Holdings reached 4,256 tonnes despite a 7 per cent slip in assets under management to $574 billion as gold prices fluctuated throughout the year.
Jewellery designers in the UAE argue that physical gold remains the preferred choice for Indian families during Dhanteras, despite the growth in ETF investment. India ranked third globally for gold fund inflows in 2026, attracting $4.71 billion year-to-date, behind the UK and China.
Why it matters
The surge in gold ETFs reflects growing investor interest in alternative gold holdings, yet traditional physical gold demand persists for cultural and investment purposes in key markets.
Original reporting
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
