New Delhi, March 11 -- After hitting a record Rs.24,040 crore in inflows last month, the investment in gold ETFs moderated sharply in February, according to the latest data from the Association of Mutual Funds in India (AMFI).

The data released by AMFI yesterday highlighted that gold ETF inflows, albeit strong at Rs.5,255 crore, were sharply 78% down on a month-on-month (MoM) basis, coinciding with the decline in the gold prices in India and internationally.

The sharp moderation in gold ETF inflows appears less dramatic when viewed in context. Analysts say February's decline largely reflects a normalisation after January's unusually strong inflows, which were boosted by start-of-year portfolio allocations, defensive positioning and reco...