Gold and silver exchange-traded funds (ETFs) saw a sharp moderation in monthly inflows in July, with inflows declining 55% in gold ETFs and 70% in silver ETFs, according to mutual fund industry data released by the Association of Mutual Funds in India (AMFI). The fall in flows comes even as both precious metals have remained at elevated levels, raising questions about whether investors are becoming cautious after the strong rally.
Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance told ETMutualFunds that the sharp decline in July inflows reflects a typical normalisation following strong earlier purchases, elevated prices, and some profit-taking. He further said that investors who bought gold and silver during the previous rally may be less inclined to add at current levels.
