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Gold ETFs in India Experience Historic Inflow of Rs 3,751 Crore in January Amid Global Tensions and US Tariffs

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Gold exchange-traded funds (ETFs) experienced a remarkable increase in inflows this January, with investors contributing Rs 3,751.4 crore, as reported by the Association of Mutual Funds in India (AMFI) on Wednesday. This month’s inflow marks the highest ever for gold ETFs in a single month, surpassing December 2024’s investment of Rs 640 crore.

The growth in gold ETFs over the past year has been astounding, showing an annual increase of 471 percent in inflows, climbing from Rs 657 crore in January 2024 to Rs 3,751.4 crore in January 2025.

In addition to soaring investment figures, gold ETFs have also provided solid returns, with an average gain of nearly 7.29 percent in January alone. Several factors contributed to this surge in investment, including rising gold prices and heightened market volatility prompted by US President Donald Trump’s tariff threats. In light of global uncertainties and geopolitical tensions, many investors have turned to gold as a safe-haven asset.

Moreover, the anticipation of interest rate cuts by prominent central banks, including the US Federal Reserve, has further enhanced gold’s appeal. Lower interest rates decrease the opportunity cost of holding gold, driving up demand.

Investors are increasingly leveraging gold ETFs to hedge against inflation and diversify their portfolios. Given the ongoing inflationary pressures affecting global economies, gold remains a favored asset for those seeking stability.

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After reaching an all-time high earlier this week, gold prices have experienced fluctuations, with a decline observed on Wednesday in response to hawkish remarks from US Federal Reserve Chair Jerome Powell, who indicated a more cautious pace regarding rate cuts.

On the Multi Commodity Exchange (MCX), gold futures for April delivery dropped by Rs 345, settling at Rs 85,178 per 10 grams. In the international market, gold futures fell by 0.18 percent to $2,892.76 per ounce.

Notably, on February 10, gold prices surged to new highs in the domestic futures market amid growing uncertainty surrounding President Trump’s tariff policies, which drove demand for the precious metal. On that day, the price of 24-carat gold reached Rs 8,537 per gram, while 22-carat gold was priced at Rs 8,332 per gram, according to the India Bullion and Jewellers Association (IBJA).

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Business

Domestic LPG Cylinder Price Increased by Rs 29

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New Delhi: The price of domestic LPG cooking gas cylinders has been increased by Rs 29 across India. This is the second price hike in the last three months.

The increase comes as global energy prices continue to rise due to the ongoing conflict in the Middle East.

After the revision, a domestic LPG cylinder now costs Rs 942 in Delhi, Rs 941.40 in Mumbai, Rs 968 in Kolkata, and Rs 957.50 in Chennai. In Bengaluru, the new price is Rs 944.50 per cylinder.

READ MORE :Odisha Engineer under Vigilance Scanner

The government said the cost of supplying LPG has increased significantly. However, subsidies under the Pradhan Mantri Ujjwala Yojana continue to help over 10 crore beneficiaries.

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Petrol, diesel, and CNG prices have also increased in recent weeks as global fuel markets remain volatile.

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Honda Begins Delivery of 2026 City Hybrid

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Business: Honda Cars India has started delivering the new 2026 Honda City Hybrid to customers. The first car was handed over at a dealership in Bengaluru.

Honda President and CEO Takashi Nakajima attended the special delivery event. Other senior company officials were also present.

The first customer received a Crystal Black Pearl Honda City Hybrid. The car was delivered with a symbolic key and a gift hamper.

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The updated City comes with new features such as ventilated front seats and a 360-degree camera. It also offers wireless Apple CarPlay, Android Auto, and a sunroof.

The sedan is available with petrol and strong-hybrid powertrain options. Honda claims the hybrid version delivers a mileage of 27.26 kmpl.

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READ MORE:Boy Dies in Cricket Camp Accident in Mumbai

The Honda City competes with the Volkswagen Virtus, Skoda Slavia, and Hyundai Verna in India.

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Overseas Loans by Indian Firms See Sharp Decline

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Business : Indian companies borrowed $5.43 billion from abroad in March, according to RBI data. This was 51% lower than March last year.

Experts said the weak rupee and high global interest rates made foreign loans less attractive for companies.

In the financial year 2025-26, India Inc raised nearly $43 billion through foreign borrowings. This was down from $61 billion in the previous year.

In March 2025, borrowings had crossed $11 billion due to large deals by companies like JSW Steel and Tata Semiconductor Manufacturing.

Companies are also avoiding overseas loans because hedging costs have become expensive during currency volatility.

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The RBI reportedly discussed easing foreign borrowing rules and offering hedging support, but no final decision was taken.

Market experts said the ongoing West Asia conflict has increased uncertainty, making companies cautious about raising funds from abroad.

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