-4.1%: The average return from gold ETFs in the past month.

Business Standard
8th October

-4.1%: The average return from gold ETFs in the past month.

  • Gold has been on a weak wicket for the past month, with exchange-traded funds (ETFs) in this space witnessing a decline of 4.1 per cent over the past month.
  • One major factor that has led to weakness in the yellow metal is the strengthening of the US dollar. This is happening on account of expectations that the US will soon come up with a stimulus package.
  • All markets, including gold, are expected be volatile in the run-up to the US Presidential election. As a result, many investors are taking some money off the table by booking profits. .
  • With real interest rates remaining low or in the negative, and central banks likely to continue with their accommodative policies, gold is expected to continue to do well for at least a year or more.
  • Investors who do not have at least a 10-15 per cent gold in their portfolios may take advantage of this correction to build exposure.

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