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The pace of investment in Gold ETFs slowed down significantly in March 2026. According to data from the Association of Mutual Funds in India (AMFI), investments in Gold ETFs plummeted by 57% to ₹2,265 crore, down from ₹5,254 crore in February. Meanwhile, outflows from Silver ETFs continued for the second consecutive month, maintaining pressure on this segment.

**Outflows Continue in Silver ETFs**
According to AMFI, Silver ETFs witnessed net outflows of ₹683 crore in March, following an outflow of ₹826 crore recorded in February. This marks the second consecutive month in which investors have withdrawn funds from Silver ETFs, reflecting waning market confidence.

**Commodity ETFs Deliver Poor Performance**
Commodity-based ETFs delivered a notably weak performance in March. Out of a total of 43 commodity ETFs, every single one generated negative returns. The UTI Silver ETF suffered the steepest decline, falling by approximately 14.72%.

Additionally, the DSP Silver ETF, Aditya Birla SL Silver ETF, Zerodha Silver ETF, and HDFC Silver ETF all recorded declines exceeding 13%. Gold ETFs were not immune either; 25 Gold ETFs witnessed declines ranging from 7% to 9.5%.

**Investor Interest Remains Intact**
According to Nehal Meshram, a Senior Analyst at Morningstar, Gold ETFs continued to experience net inflows in March, albeit at a slower pace compared to previous periods. He noted that following a surge in investments at the beginning of the year, the situation is now normalizing; however, investor interest in gold remains undiminished.

**Global Factors Exert Pressure**
Global markets witnessed several shifts during March. US Federal Reserve Chair Jerome Powell signaled that interest rates could remain elevated for an extended period due to persistent inflationary pressures. This development strengthened the US dollar and intensified the downward pressure on gold and silver prices. Consequently, in mid-March, gold prices plummeted by over 10% within a single week, while silver witnessed a sharp decline of up to 15%.

**Decline in AUM**
A decline was also observed in the Assets Under Management (AUM) of Gold and Silver ETFs. The AUM of Gold ETFs fell by approximately 6% to ₹1.71 lakh crore, while the AUM of Silver ETFs dropped by 13% to ₹79,805 crore.

**Advice for Investors?**
According to Tata Mutual Fund, gold prices may remain range-bound in the short term; however, the potential for an upward trend persists over the long term. Investors are advised to gradually increase their investments during periods of decline. Meanwhile, when investing in silver, investors should exercise caution and invest in tranches, given its higher volatility. Overall, March proved to be a challenging period for commodity ETFs, yet opportunities continue to exist for long-term investors.

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