Indian investments in ETFs were up 44% before this holy day, despite fewer on-foot buyers. The trade value of gold ETFs, or paper gold, on India’s National Stock Exchange rose to 6.08 billion rupees ($115.8 million) from 4.23 billion rupees a year earlier, while the total number of units traded on the bourse grew 10% to 2.2 million, report Debiprasad Nayak and Biman Mukherji for The WSJ. [Gold ETF Investors Unfazed by Pullback]
“Gold has become an asset class which is a must-have in many people’s portfolio,” Gnananskhar Thiagarajan, director at Commtrendz Research, said.
News that the Federal Reserve seems to be more open to taking additional steps to bolster economic growth has also supported gold prices. Gold prices have been buoyed for months in part by the Fed’s bond-buying programs, reports The Associated Press. [Gold ETFs Recover on Fed Dovish Comments]
Tisha Guerrero contributed to this article.