New Delhi, July 8 -- Gold has lost some of its glitter.

The price of gold has fallen from its January peak of Rs.1.64 lakh per 10 gm to around Rs.1.40 lakh currently. This is bad news for gold Exchange Traded Funds (ETFs) as falling gold prices drag down returns on gold ETFs.

Indeed, domestic gold ETFs saw a net outflow of about Rs.725 crore in May, overturning more than a year of strong investor interest. The decline in the number of investor folios between April and May clearly shows that investors are selling off their gold ETF holdings.

This is a complete turnaround from 2025-26, when net inflows surged to Rs.68,868 crore, more than double the total inflow of Rs.30,213 crore in the past five fiscal years. The popularity of gold ETF...