Gold ETF inflows jump 67% to Rs 2,596 crore in August. Why are investors piling in?

Gold prices and Gold ETFs have delivered strong returns, but experts caution investors against chasing recent performance. While central bank buying, geopolitical risks and diversification benefits support gold’s medium-term outlook, its lower Sharpe ratio highlights its cyclical nature. Experts recommend treating gold as a portfolio diversification tool and maintaining an appropriate allocation rather than increasing exposure solely because prices have risen.