Gold exchange-traded funds (ETFs) have delivered solid returns over the past three months, with some funds gaining as much as 27%. However, recent trading sessions have seen heightened volatility, as investors rush to book their profits, after the yellow metal extended the rally it began in April 2025.Gold ETFs are funds that mirror the price of physical gold, with each unit typically equivalent to one gram. They are traded on stock exchanges and can be purchased or sold via a demat and trading account.Satish Dondapati, fund manager at Kotak Mutual Fund told ET, “The rally, which began in April 2025, has been supported by expectations of a potential US Federal Reserve rate cut, heightened geopolitical tensions, robust investment demand, and continued central bank accumulation.The most recent $250–$300 upswing was largely driven by increased safe-haven buying amid concerns over the ongoing US government shutdown.” Dondapati added that gold prices have recently corrected, as investors booked gains following a nearly 25% rally over two months. The retracement was further influenced by a rise in US bond yields and a stronger dollar.Top performersOver the past three months, UTI Gold ETF led gains with a 27.19% return, followed by LIC MF Gold ETF at 23.40%.Kotak Gold ETF returned 22.96%, while Nippon India ETF Gold BeES, the oldest and largest gold ETF, delivered 22.94%. Tata Gold ETF recorded the lowest return in the period, at 22.25%.However, in the last two weeks, returns have slowed considerably, averaging 0.70%. UTI Gold ETF again outperformed with a 4.26% gain, while Aditya Birla Sun Life Gold ETF lagged at 0.12%. The last week saw sharper declines, with gold ETFs falling up to 7%, averaging a 6.11% loss.Tata Gold ETF was hit hardest with a 6.81% drop, and UTI Gold ETF saw the smallest decline of 2.64%.On 24 October, gold futures for December delivery on the Multi Commodity Exchange (MCX) slipped by Rs 533, or 0.43%, to Rs 1,23,571 per 10 grams, while silver futures dropped Rs 1,386, or 0.93%, to Rs 1,47,126 per kilogram. The decline was driven by a mix of global signals and cautious market sentiment ahead of key economic data, prompting traders to lock in profits at higher levels.Long term outlookDespite recent short-term fluctuations, Dondapati stressed that the fundamental drivers for gold remain strong. Dondapati added that in the near term, gold is likely to remain volatile due to uncertainty surrounding global trade policies and the US shutdown, ET reported. “However, in the medium to long term, the key structural drivers for gold remain intact — including elevated global debt levels, persistent central bank demand, and ongoing geopolitical and inflationary pressures.”Adding to global sentiment, billionaire investor Ray Dalio noted on X that US sanctions on Russia’s oil giants could have broad financial consequences, potentially weakening the dollar and boosting gold. Dalio described gold as a “non-fiat currency” that “remains securely held and universally accepted,” historically appreciating during periods of currency stress and low interest rates.How should investors proceed?For investors, Dondapati recommended a cautious approach. Rather than investing in a lump sum, he suggests phased investments through systematic investment plans (SIPs) or systematic transfer plans (STPs) in gold ETFs or gold mutual funds, tailored to individual risk profiles and asset allocation strategies.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India) 

Gold exchange-traded funds (ETFs) have delivered solid returns over the past three months, with some funds gaining as much as 27%. However, recent trading sessions have seen heightened volatility, as investors rush to book their profits, after the yellow metal extended the rally it began in April 2025.Gold ETFs are funds that mirror the price of physical gold, with each unit typically equivalent to one gram. They are traded on stock exchanges and can be purchased or sold via a demat and trading account.Satish Dondapati, fund manager at Kotak Mutual Fund told ET, “The rally, which began in April 2025, has been supported by expectations of a potential US Federal Reserve rate cut, heightened geopolitical tensions, robust investment demand, and continued central bank accumulation.The most recent $250–$300 upswing was largely driven by increased safe-haven buying amid concerns over the ongoing US government shutdown.” Dondapati added that gold prices have recently corrected, as investors booked gains following a nearly 25% rally over two months. The retracement was further influenced by a rise in US bond yields and a stronger dollar.Top performersOver the past three months, UTI Gold ETF led gains with a 27.19% return, followed by LIC MF Gold ETF at 23.40%.Kotak Gold ETF returned 22.96%, while Nippon India ETF Gold BeES, the oldest and largest gold ETF, delivered 22.94%. Tata Gold ETF recorded the lowest return in the period, at 22.25%.However, in the last two weeks, returns have slowed considerably, averaging 0.70%. UTI Gold ETF again outperformed with a 4.26% gain, while Aditya Birla Sun Life Gold ETF lagged at 0.12%. The last week saw sharper declines, with gold ETFs falling up to 7%, averaging a 6.11% loss.Tata Gold ETF was hit hardest with a 6.81% drop, and UTI Gold ETF saw the smallest decline of 2.64%.On 24 October, gold futures for December delivery on the Multi Commodity Exchange (MCX) slipped by Rs 533, or 0.43%, to Rs 1,23,571 per 10 grams, while silver futures dropped Rs 1,386, or 0.93%, to Rs 1,47,126 per kilogram. The decline was driven by a mix of global signals and cautious market sentiment ahead of key economic data, prompting traders to lock in profits at higher levels.Long term outlookDespite recent short-term fluctuations, Dondapati stressed that the fundamental drivers for gold remain strong. Dondapati added that in the near term, gold is likely to remain volatile due to uncertainty surrounding global trade policies and the US shutdown, ET reported. “However, in the medium to long term, the key structural drivers for gold remain intact — including elevated global debt levels, persistent central bank demand, and ongoing geopolitical and inflationary pressures.”Adding to global sentiment, billionaire investor Ray Dalio noted on X that US sanctions on Russia’s oil giants could have broad financial consequences, potentially weakening the dollar and boosting gold. Dalio described gold as a “non-fiat currency” that “remains securely held and universally accepted,” historically appreciating during periods of currency stress and low interest rates.How should investors proceed?For investors, Dondapati recommended a cautious approach. Rather than investing in a lump sum, he suggests phased investments through systematic investment plans (SIPs) or systematic transfer plans (STPs) in gold ETFs or gold mutual funds, tailored to individual risk profiles and asset allocation strategies.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India) 

Gold exchange-traded funds (ETFs) have delivered solid returns over the past three months, with some funds gaining as much as 27%. However, recent trading sessions have seen heightened volatility, as investors rush to book their profits, after the yellow metal extended the rally it began in April 2025.Gold ETFs are funds that mirror the price of physical gold, with each unit typically equivalent to one gram. They are traded on stock exchanges and can be purchased or sold via a demat and trading account.Satish Dondapati, fund manager at Kotak Mutual Fund told ET, “The rally, which began in April 2025, has been supported by expectations of a potential US Federal Reserve rate cut, heightened geopolitical tensions, robust investment demand, and continued central bank accumulation.The most recent $250–$300 upswing was largely driven by increased safe-haven buying amid concerns over the ongoing US government shutdown.” Dondapati added that gold prices have recently corrected, as investors booked gains following a nearly 25% rally over two months. The retracement was further influenced by a rise in US bond yields and a stronger dollar.Top performersOver the past three months, UTI Gold ETF led gains with a 27.19% return, followed by LIC MF Gold ETF at 23.40%.Kotak Gold ETF returned 22.96%, while Nippon India ETF Gold BeES, the oldest and largest gold ETF, delivered 22.94%. Tata Gold ETF recorded the lowest return in the period, at 22.25%.However, in the last two weeks, returns have slowed considerably, averaging 0.70%. UTI Gold ETF again outperformed with a 4.26% gain, while Aditya Birla Sun Life Gold ETF lagged at 0.12%. The last week saw sharper declines, with gold ETFs falling up to 7%, averaging a 6.11% loss.Tata Gold ETF was hit hardest with a 6.81% drop, and UTI Gold ETF saw the smallest decline of 2.64%.On 24 October, gold futures for December delivery on the Multi Commodity Exchange (MCX) slipped by Rs 533, or 0.43%, to Rs 1,23,571 per 10 grams, while silver futures dropped Rs 1,386, or 0.93%, to Rs 1,47,126 per kilogram. The decline was driven by a mix of global signals and cautious market sentiment ahead of key economic data, prompting traders to lock in profits at higher levels.Long term outlookDespite recent short-term fluctuations, Dondapati stressed that the fundamental drivers for gold remain strong. Dondapati added that in the near term, gold is likely to remain volatile due to uncertainty surrounding global trade policies and the US shutdown, ET reported. “However, in the medium to long term, the key structural drivers for gold remain intact — including elevated global debt levels, persistent central bank demand, and ongoing geopolitical and inflationary pressures.”Adding to global sentiment, billionaire investor Ray Dalio noted on X that US sanctions on Russia’s oil giants could have broad financial consequences, potentially weakening the dollar and boosting gold. Dalio described gold as a “non-fiat currency” that “remains securely held and universally accepted,” historically appreciating during periods of currency stress and low interest rates.How should investors proceed?For investors, Dondapati recommended a cautious approach. Rather than investing in a lump sum, he suggests phased investments through systematic investment plans (SIPs) or systematic transfer plans (STPs) in gold ETFs or gold mutual funds, tailored to individual risk profiles and asset allocation strategies.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)