Gold ETFs rebounded on Indian stock exchanges following a significant drop during the last few days. All the Gold ETFs ended the February 3 trading session in green after posting a gain of up to 8%.
Invesco India Gold Exchange Traded Fund was the highest gainer with a jump of 8%, while Nippon India ETF Gold BeES, the largest gold ETF, gained 5.59%. The highest volume of trade was witnessed in the Tata Gold Exchange Traded Fund, which gained 0.47%. The Gold BeES saw the biggest trade in terms of value, at Rs 2,729.27 crore.
Gold ETF Trades Today
The ETFs have an NAV but are traded at the market price on the stock exchanges. The trading happens on the ETF’s market price and not the NAV.
For example, the NAV of Gold BeES on February 2 was Rs 122.27 and Gold BeES closed the previous day’s session at Rs 118.67.
The market price at open was Rs 120.10, went up to post intra-day high of Rs 126.80 and closed the day at Rs 125.30, making a gain of 5.59%.
On February 3, gold rate in MCX is Rs 1,51,376 and gold futures trade at Rs 1,52,038. In the international market, gold trades around $4,907, up by 5.3%.
Rebound in Gold Prices
After two sessions of intense selling, bargain hunting emerged. The price of the precious metal had dropped by almost 5% the day before, continuing Friday’s slide, which was the steepest in over ten years.
The announcement that President Trump has nominated Kevin Warsh, who is thought to be more hawkish than other candidates, as the next chair of the Federal Reserve, caused a significant selloff.
Warsh’s appointment gave strength to the dollar, leading to a drop in gold prices.
Investors are optimistic about gold and silver, expecting at least two interest rate cuts in 2026, which could benefit the market. Non-yielding bullion, like gold, historically performs better in low-interest-rate environments, making it appealing during such times.
UBS has raised its gold price target to $6,200 for March, June, and September 2026, up from $5,000 previously. Their base case scenario predicts an incredible 27% upside from current prices, after a steep pullback.