Analysts say that this year Gold saw record highs. In August 2020, it reached the highest level of 56 thousand per ten grams. However, he has not been able to maintain this height.
On one hand, the hope of recovery in the economy has increased due to corona vaccination all over the world. But some countries also have lockdowns. Vaccines are also available. It is believed that this infection will end.
However, it is also true that there is not much hope for economic recovery. In this way, the rise in gold prices and the returns of the Gold Fund are expected to be good. But the opposite is happening.
The investment of returns in Gold Fund is continuously declining. The returns of gold funds and gold ETFs have decreased in the last three months.
Return in Gold Fund in negative zone
The returns of Gold Funds have reached the Return Negative Zone during the last few months. In the last three months, the Gold Fund has given -2.52 per cent returns.
It is 0.10 per cent in a month and -2.15 per cent in a week. So far this year, the returns of this category have been negative. In August 2020, an investment of Rs 907.85 crore was made in the Gold ETF. Whereas, in December 2020 it was reduced to Rs 430.65 crore.
What should gold fund investors do?
Analysts say that this year Gold saw record highs. In August 2020, it reached the highest level of 56 thousand per ten grams. However, he has not been able to maintain this height. Gold has dropped now. In fact, with the expectation of recovery in the economy, investors have moved towards more risky investment instruments such as stocks, mutual funds and reduced investment in gold.
This is the reason why Gold ETF funds are now giving negative returns. However, some analysts say that it would be wrong to believe that the gold rally is over. If the relief package is approved in the US economy, then inflation will increase and investors will invest in gold to hedge it. In such a situation, the prices of gold can increase and the returns of gold funds and ETFs can also increase.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.