Gold bullion and related exchange traded funds have been moving on safe-haven investment interest, but the next round of price appreciation could come from demand for the physical commodity.
Bullion-backed ETFs such as SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) have been losing strength over the past month but still gained almost 6% year-to-date. [Gold ETFs Recover on Fed Dovish Comments]
Fund managers, though, believe these gold ETFs could attract even more attention heading into Akshaya Tritiya, a Hindu holy holiday that falls on April 24 this year and one of the biggest gold buying festivals, reports Tapash Talukdar for the Economic Times.
Akshaya Tritiya is traditionally a day that is believed to bring good luck and success. Those who provide charity on this day are said to be blessed. Accordingly, many people purchase jewelry on this holy day.
“Demand is going at reasonable pace as restocking at jewellers level has started just before Akshaya Tritiya,” said a dealer with a private bullion importing bank in Mumbai, according to a Reuters report.
Additionally, the ongoing wedding season, which is now at is peak, in India has also helped prop up gold prices.