Stock market volatility boosts investments in gold ETFs in India: WGC
Thu Jan 09 2025
The stock market volatilities have boost the investments in the gold Exchange Traded Funds (ETFs) in India, as the country witnessed its eighth consecutive month of inflows into ETFs in December 2024, the world Gold Council (WGC) stated in its commentary.
The trends for gold ETFs reflect rising investor interest in the metal as
equity market volatility persisted. The gold price today for 10 grams of 24k
gold (99.9 per cent) in Delhi, India is 79,830.00 Indian Rupee.
The WGC further highlighted that the pace of inflows has moderated compared to
earlier months. The surge in gold investments can be attributed to a
combination of domestic and international factors.
A volatile equity market environment coupled with heightened global
geopolitical risks steered Indian investors toward gold as a safe-haven asset,
the report added. Additionally, expectations of further rate cuts by central banks
worldwide fueled optimism in the bullion market.
Globally, gold ETFs achieved a milestone in 2024, marking their first annual
inflow in four years. Despite minor declines in collective holdings, total
assets under management (AUM) jumped by 26 per cent to a record USD 271
billion, driven by a rocketing gold price and net inflows amounting to USD 3.4
billion.
This marked the strongest annual gold price performance since 2010. Asian
markets, including India, played a pivotal role in boosting global gold ETF
inflows.
Earlier in the previous week, the WGC stated that India's year-to-date
purchased 73 tonnes of gold with total gold reserves of 876 tonnes as on
November end, making it the second-largest buyer of 2024 after Poland.
The National Bank of Poland (NBP) emerged as the largest buyer of gold in November,
increasing its reserves by 21 tonnes to reach a total of 448 tonnes.
Gold accounts for
nearly 18 per cent of Poland's total reserves, just shy of its 20 per cent
target. With year-to-date purchases of 90 tonnes, NBP has maintained its
position as the top gold buyer of 2024.
The Central Bank of Uzbekistan also made significant additions, increasing its
reserves by 9 tonnes after a hiatus since July.
Source: https://www.aninews.in/