India’s physically backed gold exchange-traded funds (ETFs) recorded their first net monthly outflow in a year in May, as investors booked profits following a sharp rise in prices triggered by higher import duties, data showed on Thursday.The outflow could reduce import demand in the world’s second-largest gold consumer, helping narrow the trade deficit and support the rupee, one of Asia’s worst-performing currencies.Gold ETFs registered net outflows of $61 million, equivalent to 0.4 metric tonnes, in May, reducing total holdings to 116.3 tonnes, data from the World Gold Council showed.Despite May’s outflow, gold ETFs have attracted net inflows of $3.48 billion so far this year.On May 13, India raised import duties on gold and silver to 15 per cent from 6 per cent as part of efforts to curb overseas purchases of the precious metals and ease pressure on the country’s foreign exchange reserves.Following the announcement, domestic gold prices surged to ₹164,497 ($1,717) per 10 grams, their highest level in more than two months.Published on June 4, 2026