Gold jumps ₹480 to close near ₹1 lakh/10 gm; gold ETFs record outflows for second month straight

Gold prices in the national capital increased by ₹480 on Friday to ₹99,730 per 10 gram (99.9% purity, 24K) on the back of rising safe haven demand for the metal, according to the All India Sarafa Association.

Gold rates jumped ₹480 to hover near the ₹1 lakh/10 gram mark amid rising tensions between India and Pakistan. As gold is a safe-haven asset, its demand and prices increase during periods of market volatility and geopolitical uncertainty.

On Thursday, the yellow metal closed at ₹99,250 per 10 gram (99.9% purity).

Gold of 99.5% purity climbed ₹480 to ₹99,280 per 10 gram on Friday after closing at ₹98,800 per 10 gram in the previous market close. In the international markets, spot gold jumped $22.37 to $3,328.09 per ounce.

"Gold prices are holding steady as easing trade tensions take some pressure off the market," a PTI report quoted Abans Financial Services' Chief Executive Officer Chintan Mehta as saying.

Mehta added, “However, geopolitical risks stemming from soaring India-Pakistan tensions, Russia-Ukraine war, and Israel's plans to take full control of Gaza continue to simmer in the background and may keep underlying support for gold intact. These developments could continue to drive demand for gold as a hedge against uncertainty.”

Silver prices also jumped ₹200 to ₹98,400 per kg after settling at ₹98,200 per kg on Thursday. Spot silver in the overseas markets increased by 0.23% to $32.54 per ounce.

Gold ETFs see outflows for the second consecutive month

Despite rising gold prices, gold ETFs recorded net outflows of ₹5.82 crore in April 2025, as per data from the Association of Mutual Funds in India (AMFI). Gold ETFs saw a decline in March 2025 as well even after witnessing lifetime highs. Investors withdrew as much as ₹77 crore from gold ETFs in March 2025 after recording a net inflow of ₹1,979.84 crore in February and ₹3,751.42 crore in January.

However, even with the outflows, the net assets under management (AUM) of gold ETFs hit a record high of ₹61,422.19 crore in April, depicting continued investor interest in the segment. In March 2025, gold ETFs saw the first negative net flow after nearly a year of consistent inflows, possibly due to profit booking among the investors.