Gold ETFs witnessed their first outflow in over a year, while silver ETFs recorded outflows for the fourth consecutive month, according to the latest data from the Association of Mutual Funds in India (AMFI).In May, gold ETFs saw an outflow of Rs 725 crore, compared with an inflow of Rs 3,040 crore in April. The last outflow in gold ETFs was in April 2025, at Rs 5.82 crore.Silver ETFs, meanwhile, recorded an outflow of Rs 2,133 crore in May, against an outflow of Rs 126 crore in April. Over the past four months, silver ETFs have seen total outflows of Rs 3,770 crore, with May registering the highest outflow in the period.Also Read | AMFI Data: Equity mutual fund inflows tumble 40% to Rs 22,907 crore in May Nehal Meshram, Senior Analyst at Morningstar Investment Research India, said gold ETFs saw a moderation in net inflows through early 2026, followed by a reversal in May. After strong inflows of Rs 24,040 crore in January, momentum tapered in subsequent months, indicating a gradual cooling in incremental allocations.The reversal appears driven by a combination of profit booking after the earlier rally in gold prices and a shift in investor risk appetite, with some rotation away from safe-haven assets, Meshram added.Silver ETFs posted an average return of 9.59% in May, with DSP Silver ETF offering the highest return at around 9.72% and Bandhan Silver ETF delivering the lowest at 9.42%. In the same period, gold ETFs delivered an average return of 4%, with Zerodha Gold ETF offering the highest return at 4.07% and The Wealth Company Gold ETF recording the lowest at around 3.92%.Additionally, the rising opportunity cost of holding gold, particularly in an environment of relatively attractive yields in fixed income, may have contributed to the pullback. The pattern of flows also suggests that a significant portion of earlier allocations was tactical in nature, making them more sensitive to price movements and short-term macro cues, Meshram said.Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said gold ETFs flipped to an outflow of Rs 725 crore after months of strong inflows, indicating classic profit booking after a sustained rally.The AUM of gold ETFs stood at Rs 1.84 lakh crore, while silver ETFs’ AUM was Rs 86,216 crore.Also Read | AMFI Data: Mutual fund SIP inflows slip 1% to Rs 30,954 crore in May Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital, said the fall in gold prices triggered net outflows from gold ETFs, highlighting investors’ tendency to chase recent performance trends.(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will get them answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in, along with your age, risk profile, and Twitter handle.