Gold Becomes Expensive Ahead Of Dhanteras But Why Are Gold ETFs Falling?

Ahead of Dhanteras 2026, gold prices have witnessed an upward trend across the bullion markets. In the Delhi market, 24-carat gold has surged by 4,800 rupees to reach the level of 1,46,600 rupees per 10 grams. On the other hand, Gold Exchange Traded Funds (ETFs) are witnessing a downward trend. Over the past month, gold ETFs have tumbled by nearly 4%. This contrasting scenario has sparked questions in the minds of investors regarding whether this is the right time to invest in gold on the occasion of Dhanteras.

Why is there persistent pressure on gold prices?

Market experts believe that ongoing tensions in the Middle East, the strengthening of the US dollar, and high interest rates globally have created continuous pressure on gold prices. 80 lakh rupees per 10 grams. So, the 4% correction in gold ETFs is being directly linked to these global macroeconomic factors. Commodity expert Anuj Gupta notes that consistent gold purchases by central banks around the world continue unabated. With continuous investments flowing into gold ETFs, future prices are expected to receive strong support. Most importantly, despite this recent dip, gold has delivered a return of around 8% from the last Dhanteras until now. This return is reportedly outperforming the Nifty 50 benchmark. Thus, individuals planning for long-term investments may find this to be an ideal window.

Rise in gold ETF investments amidst ongoing price correction

According to a report by Mint, despite fluctuations in gold prices, investors' interest in gold ETFs remains intact. 4 billion dollars. This positive trend has continued into the year 2026. By September, investments worth approximately 39 billion dollars had already flown into gold ETFs. In India as well, retail and institutional investors have increased their holdings in gold ETFs. Estimates suggest that October alone is likely to witness inflows of about 3,300 crore rupees into these mutual fund categories.

How risky is it to invest in gold ETFs right now?

Historically, gold ETFs have provided healthy returns over the long term, but the recent correction has impacted their short-term performance as well. 22 percent. 58 percent. 39 percent. 15% over five years. However, the performance over the last one month has remained subdued. As per available data up to November 4, all 25 gold ETF schemes listed on the Dhan app recorded negative returns over the trailing one-month period.

Is purchasing gold ETFs currently beneficial for investors?

Experts point out that the primary catalyst behind the decline in gold ETFs is the weakness in underlying physical gold prices. These exchange-traded funds closely track domestic market gold prices. Gold experienced a sharp correction in September, and prices have remained under pressure ever since. On the Multi Commodity Exchange (MCX), the level of 1,36,500 rupees is considered an immediate crucial support level for gold futures. Despite this corrective phase, investment inflows into gold ETFs have actually increased. September saw strong inflows of 4,451 crore rupees, marking the highest figure recorded in seven months. The first 15 days of October also witnessed inflows of approximately 1,722 crore rupees. Between January and September 2026, cumulative investments reached roughly 45,925 crore rupees, surpassing the total investment recorded for the entire year of 2025. Consequently, current market dips could represent a lucrative buying opportunity for long-term investors.