Gold ETF collection in Feb up 86% to 9.622T

Gold ETF collection in Feb up 86% to 9.622T

Mumbai: Gold collections under exchange-traded funds (ETFs) rose 86% on year to 9.622 tonnes in February on increased retail investor participation, data from the funds showed.

Gold futures were trading 0.10% higher at Rs16,542 per 10 grams at 11:55 am, after losing 1.6% since the start of March.

The contract gained over 3% in February.

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.

Religare Mutual Fund and Tata Asset Management are seeking regulatory approval to launch the product.