Mumbai: India’s gold collection under exchange-traded funds (ETF) rose 65.6% on year to 8.924 tonnes in January, when the yellow metal shed more than 2.9%, data from the funds showed.
Gold futures on the continuation charts on the Multi Commodity Exchange (MCX) closed January at Rs16,200 per 10 grams. The contract was trading at Rs16,010, down 0.48% from the previous close.
Though gold collections under ETFs are growing, they remain miniscule against India’s imports of about 400-700 tonnes annually.
Gold ETFs - instruments that can be traded like shares and are backed by physical gold holdings - are more than three years old and the segment may get crowded with some other funds planning to enter.