The Indian gold exchange-traded funds (ETFs) made a massive collection of 4.57 tonnes of gold, whch is a record in itself. This took place at the end of May, driven by the Indian auspicious festival Akshaya Tritiya, which took place on May 7 and 8, reported Reuters. The Reuters revealed the holdings by end May, as Benchmark fund (1.5 tonnes), UTI (1.32 tonnes), Kotak (0.31 tonnes), Reliance Capital (1.38 tonnes) and Quantum (0.038 tonnes).
The festival marks an occasion when Indians celebrate and welcome prosperity by indulging in gold purchase.
The ETF’s in May recorded a much higher gold holding as compared to the previous month, with a combined gold corpus increasing by 10 percent compared to April. Market news forecast suggests strong gold ETF demand for the coming months. This would be stimulated due to the metal being perceived as a better investment when compared to the falling stock exchange, rising inflation and a weak dollar.