Gold Exchange Traded Funds witnessed a sharp rally on Wednesday after remaining largely stable for more than three months, following an increase in gold import duties that made physical gold more expensive. The rise in prices renewed investor interest in gold ETFs, which are mutual-fund-like investment schemes that track gold prices and have become increasingly popular amid volatility in stock markets.
Most gold ETFs recorded gains of around 7 percent during the trading session. Mirae Asset Gold ETF emerged as one of the top gainers, surging over 8 percent to around ₹146 per unit, making it among the most expensive gold ETFs in the market. Choice Gold ETF was the costliest in the segment, trading at nearly ₹149.5 per unit after rising about 6 percent.
The renewed momentum in gold ETFs comes after the government increased import duties on gold as part of efforts to discourage excessive gold purchases and reduce pressure on foreign exchange reserves. Prime Minister Narendra Modi had recently appealed to citizens to reduce gold purchases temporarily in view of global economic uncertainties and rising external pressures.
Gold prices had already witnessed a massive rally during calendar year 2025, rising more than 60 percent over the year. However, after the strong surge, analysts expected the rally to cool down, leading to a period of slower movement in gold and related investment products over recent months. The latest import duty hike, however, has revived investor demand for gold-linked financial instruments.
Market analysts believe the long-term outlook for gold remains positive due to several global economic factors. According to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, the broader structural outlook for gold and silver continues to remain strong. He said global de-dollarisation trends, rising central bank purchases, and increasing demand for safe-haven assets against currency risks are likely to support gold prices over the coming years.
Banerjee added that international gold prices could potentially move towards USD 6,000 per ounce over the next 12 to 18 months, while silver is also expected to benefit significantly from the broader commodity uptrend.
