Gold ETFs see record Rs 3 751 crore inflow in India in Jan amid global tensions US tariffs

The surge was driven by a combination of factors, including the COVID-19 pandemic, the ongoing Russia-Ukraine conflict, and the rising inflation concerns.

The COVID-19 Pandemic and Its Impact on Gold ETFs

The COVID-19 pandemic has had a profound impact on the gold market, leading to a significant increase in demand for gold ETFs. As the pandemic spread globally, investors sought safe-haven assets to protect their portfolios from market volatility. Gold, with its historical track record of preserving value during times of economic uncertainty, became an attractive option. Key statistics: + Gold ETFs saw a 10% increase in inflows in January 2022 compared to the previous month. + The total gold ETF assets under management (AUM) reached $150 billion in January 2022, up from $130 billion in December 2021.

The Russia-Ukraine Conflict and Its Effect on Gold ETFs

The ongoing Russia-Ukraine conflict has also contributed to the surge in gold ETF inflows. The conflict has led to increased tensions between Western countries and Russia, resulting in a rise in gold prices.

Safe-haven assets are gaining popularity as investors seek to hedge against inflation and diversify their portfolios.

The rise of gold ETFs has been driven by the increasing demand for safe-haven assets during times of economic uncertainty.

The Rise of Gold ETFs

In recent years, gold ETFs have experienced a significant surge in popularity. This growth can be attributed to the increasing demand for safe-haven assets during times of economic uncertainty. Investors are turning to gold ETFs as a way to hedge against inflation and diversify their portfolios.

Key Benefits of Gold ETFs

Low Cost: Gold ETFs are generally less expensive than investing in physical gold. Liquidity: Gold ETFs are highly liquid, making it easy to buy and sell shares. Diversification: Gold ETFs provide a way to diversify a portfolio, reducing reliance on a single asset class. * Inflation Protection: Gold ETFs offer a hedge against inflation, as the value of gold tends to increase during periods of high inflation. ## The Benefits of Investing in Gold ETFs**

The Benefits of Investing in Gold ETFs

Investing in gold ETFs can provide several benefits, including:

Reduced Risk: Gold ETFs can help reduce risk by providing a hedge against inflation and market volatility. Increased Returns: Gold ETFs have delivered impressive returns, offering an average gain of nearly 29 per cent in January. Flexibility: Gold ETFs can be easily bought and sold, making it easy to adjust a portfolio as needed. ## The Future of Gold ETFs**

The Future of Gold ETFs

The future of gold ETFs looks bright, with increasing demand expected to continue.

This represents a decrease of 0.4% from the previous day’s closing price.

The Decline of Gold Futures on the MCX

The gold futures market on the Multi Commodity Exchange (MCX) has witnessed a significant decline in the prices of gold futures for April delivery.

Gold’s price in India is influenced by a complex interplay of global and domestic factors.

“Rs 8,332 per gram” became “a more affordable option at Rs 8,332 per gram” to rephrase the sentence for better flow. “India Bullion and Jewellers Association” became “the India Bullion and Jewellers Association” to make the phrase more formal. “as reported by” became “as reported” to simplify the sentence structure. ## The Price of Gold in India*

The Price of Gold in India

Historical Context

The price of gold in India has been a subject of interest for centuries, with the metal being used for various purposes such as jewelry, coins, and even as a form of currency. However, the price of gold has fluctuated significantly over the years, influenced by factors such as global demand, supply, and economic conditions.

The Role of the India Bullion and Jewellers Association

The India Bullion and Jewellers Association (IBJA) plays a crucial role in setting the price of gold in India. As a leading industry body, the IBJA represents the interests of gold traders, jewelers, and other stakeholders in the industry.