Indian Gold ETF volumes almost doubled in August over July this year

The Investor interest seems to be returning to the yellow metal. In spite of redemptions by fund managers, at record gold prices, the net volumes in India Gold Exchange Traded Funds (ETFs) nearly doubled

NEW DELHI (Scrap Monster): The Investor interest seems to be returning to the yellow metal. In spite of redemptions by fund managers, at record gold prices, the net volumes in India Gold Exchange Traded Funds (ETFs) nearly doubled during the month of August. The increased ETF volumes suggest that redemptions have subsided and that the investor community has shown more interest in gold having crossed the psychological barrier of Rs.30, 000.

Gold ETFs had witnessed unprecedented redemptions during the month of July with the rise in gold prices. The total Assets under Management (AUM) of the top seven India-dedicated ETFs had fallen by almost one-fifth in July led by heavy redemptions and weakening currency. According to data, the volumes in the top five ETFs averaged 79.01 (units in thousands) in July. However, the gold ETF volumes in the same five top ETFs averaged 151.05 (units in thousands) in August. The volumes have grown by almost 92% over the month.

According to industry analysts, redemptions continued to remain strong during August as well. But the increased buying interest has managed to offset the selling momentum. The uncertainty in the market has also pushed up gold investments in the country. Several brokerages expect the gold prices to stabilize around the current levels. The upcoming festive season and the in line monsoon are likely to spur investments in gold, especially gold ETFs.

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