Investors move to gold amid growth concerns, ETF inflows at 2-year high

Industry players said worsenining geopolitical scenario, tightening of interest rates and volatile equity markets have led to investors showing faith in the yellow metal

Gold exchange traded funds (ETFs) saw monthly inflows of Rs 1,100 crore in April, most since February 2020. Industry players said the worsenining geopolitical situation, tightening of interest rates and volatile equity markets have led to investors showing faith in the yellow metal.

Himanshu Srivastava, associate director–manager research, Morningstar India says, “Continuation of geopolitical tension due to the war between Russia and Ukraine, surge in crude prices and concerns over surge in inflation globally as well as domestically, has once again diverted investors focus on yellow metal, which draws its appeal as safe-haven during difficult environment and as a hedge