Gold-backed ETFs saw net outflows of around 45 tonnes globally during the April-June quarter as prices corrected from earlier highs and investors rotated towards risk assets, Mirae Asset said in its latest gold and silver market update.
However, the broader demand trend remained positive.
Global gold ETF holdings rose by 18 tonnes during the first half of 2026 to 4,047 tonnes, suggesting that investor interest in gold as a portfolio asset has remained intact despite near-term profit booking.
India stood out among the markets witnessing continued inflows.
Citing World Gold Council data, Mirae Asset said Indian gold ETFs attracted 4.2 tonnes of net inflows in the second quarter, with the value of investments more than doubling year-on-year to around ₹6,300 crore.
The trend indicates that Indian investors continue to view gold as a strategic allocation option, even as some global investors reduced exposure after the metal’s strong price rally.
Why is silver behaving differently from gold?
While gold has been supported by investment demand and central bank purchases, silver’s outlook is being shaped by supply constraints and industrial demand.
Around 70-75% of global silver production comes as a by-product of mining other metals such as zinc, lead, copper and gold, limiting the ability of miners to quickly increase output when prices rise, Mirae Asset said.
Citing the Silver Institute, the fund house said the silver market is expected to remain in deficit for the sixth consecutive year in 2026, with a projected supply shortfall of around 46.3 million ounces.
The supply pressure is also visible in India, where domestic silver premiums have increased to around $3-$4 per ounce from around 25-50 cents before recent import restrictions, reflecting tighter availability and stronger demand.
What is supporting gold prices?
Central bank buying remains one of the key supports for gold.
According to Mirae Asset, central banks purchased 289 tonnes of gold in the second quarter of 2026, a 62% increase from the previous year.
Poland, China and the Czech Republic were among the major buyers, while the Reserve Bank of India also added to its gold reserves during the quarter.
The fund house also cited the World Gold Council’s central bank survey, which showed that 89% of reserve managers expect global gold reserves to rise further, while 45% plan to increase their own gold holdings over the next 12 months.
What could impact gold and silver prices ahead?
Despite the supportive factors, precious metals face risks from a stronger US dollar, higher real yields and a hawkish Federal Reserve.
The US Federal Reserve kept interest rates unchanged at 3.50%-3.75% on July 29, although three Federal Open Market Committee members supported a 25-basis-point hike. Mirae Asset said the Fed’s stance leaves the possibility of further rate increases this year.
A stronger dollar can weigh on gold and silver prices as it makes the commodities more expensive for investors holding other currencies.
Mirae Asset expects precious metals to remain volatile over the next six to 12 months, with prices likely to be influenced by monetary policy, economic data and geopolitical developments. The fund house said gold currently offers a relatively better risk-reward profile compared with silver and suggested a staggered investment approach for long-term investors.
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