After bringing good returns for investors late last year, gold exchange traded funds (ETFs) and gold funds are making a slow retreat.
Is it a time to start selling gold?
With prices of the yellow metal softening, returns from gold ETFs and funds have declined in the last two months. While gold ETFs have declined by 2.2% to 2.4%, gold funds that invest in stocks of gold mining companies have fallen by 3% to 7.8%.
Gold is currently in a consolidation phase. Trends are favouring the dollar on a short-term basis and so there is some sluggishness in gold. After hitting a record high of $1,226.1 an ounce in December , gold prices have come down to around $1,100 now.
MCX Gold prices recovered by INR 50 to INR 16,485 per ten grams at the Gold bullion market here today on fresh buying by stockists and jewellers despite weak trend in overseas gold markets.
On the other hand, silver prices dropped further down on lack of demand from industrial users.
Stockists grabbed the opportunity to buy the Gold at current level, which moved the prices moderately up on the MCX gold market .They are expecting further fall in gold prices internationally, seeing overall bearish global trend.
In New York, gold for February delivery finished down by USD 13.50, or 1.2 per cent, to USD 1,089.70 an ounce on the Comex division of NYMEX.
Silver for March delivery fell down by 40 cents to USD 16.93 an ounce.
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