Investments in physically backed gold exchange-traded funds (ETFs) by Indian investors were the third highest globally in October, even as major Western markets such as the UK and Germany saw sustained outflows, according to the latest data from the World Gold Council.

From January 1 to October 31, India emerged as the fifth-largest contributor to global gold ETF inflows. Notably, October proved to be a pivotal month, accounting for nearly one-third of India’s total inflows for the period. As of November 7, Indian gold ETF holdings had reached $2.91 billion, supported by a strong monthly inflow of $849.8 million in October.

However, preliminary data for November suggests a shift in sentiment across key markets. In the first week of the month, US gold ETFs registered outflows worth $77.6 million, while investors in other regions collectively withdrew $38.3 million. Comparable figures for Indian ETFs during this early-November window have not yet been reported.

According to the WGC, physically-backed gold exchange-traded funds are an important source of gold demand, with institutional and individual investors using them as part of well-diversified investment strategies.Investments in gold in various forms have increased over the past two years on rising geopolitical crisis and uncertainty over trade wars, particularly between the US and other nations such as China, Brazil and Canada.