It's one of the best days for Gold Exchange Traded Funds at least in the last five years at the bourses, as most of them gained around 5 per cent.
Over dozen Gold ETFs are listed in the Indian bourses. Gold BEeS, the prominent among them, gained 5 per cent at Rs 2,812.05.
Most of the them that were traded gained between 2 and 4 per cent on the NSE.
Gold ETFs are exchange traded funds that passively track the performance of Gold bullion. These funds buy gold with investor’s money (on the behalf of investors) and convert it into units.
Gold June futures in Nymex surged over six per cent at $1399/ounce. In early trade it rose to a high of $1355.
Gold has always been a favorite investment instrument for Indian investors, and for good reason. Historically, gold has proven to be an able ally against inflation as well as equity market downturns. .
However, the sharp surge in gold price impacted select jewellery stocks in line with overall market condition. Jewellers will now have to fork out more money for their inventory. Thangamayil Jewellery, Gokaldas Exports, Rajesh Exports, Gitanjali Gems and Tata Jewels slipped between one and five per cent on the NSE.
However, Titan Industries and PC Jeweller gained in excess of 2.5 per cent on the NSE.