Inflows in gold exchange traded funds increased sharply to ₹657 crore in January against ₹88 crore in December as the uncertainty over the US Fed cutting interest lingers apart from global economic uncertainty. The inflows was also aided by the launch of Tata Gold Exchange Traded Fund which garnered about ₹6 crore last month.
The asset under management in gold ETF increased 2 per cent to ₹27,778 crore against ₹27,326 crore in December, according to the Association of Mutual Funds in India data.
Gold prices in global markets have scaled new highs after going past the $2,100 per ounce-mark in early last December but has gradually come down ever since opening an opportunity for investors to consider gold ETF as an investment option. It has been trading range-bound at about $2,023 an ounce currently.
Melvyn Santarita, Analyst, Morningstar Investment Research India said with the…