Gold ETF outflows signal caution, not end of bull run

Gold has long been considered a safe-haven asset during periods of economic uncertainty, inflation concerns and geopolitical tensions.

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Over the last one year, the yellow metal rewarded investors with exceptional gains, helping Gold Exchange Traded Funds attract strong inflows across several markets. However, recent outflows from Gold ETFs in both India and global markets have sparked debate over whether investor sentiment towards gold is beginning to weaken. While the headline numbers may appear concerning, a closer look suggests that the recent withdrawals are more likely a reflection of profit booking rather than a structural shift away from gold. Global Gold ETFs recorded outflows of around $2 billion in May 2026, while India witnessed its first monthly net outflow in nearly a year. Yet, total global holdings remain close to record levels and Indian Gold ETFs