- By Aditya Pratap Singh
- Mon, 29 Jun 2026 05:11 PM (IST)
- Source:JND
- Gold ETFs declined 9-10% due to easing global tensions.
- Experts advise holding positions and gradual additions for the long term.
- Gold remains crucial for a diversified portfolio, and avoid short-term reactions.
Major gold ETFs have seen a decline of 9–10 per cent over the past month, a downturn driven by easing global geopolitical tensions and a sharp decline in crude oil prices, with Brent crude currently trading in the $70–74 per barrel range. The development has a reflection in gold prices as well as MCX gold futures (August expiry), which dropped over 10 per cent in June, slipping from approximately Rs 1.60 lakh per 10 grams in late May to Rs 1.43 lakh by June 29. Similarly, gold prices (999 purity) have cooled in the domestic retail market as well, falling from Rs 1.55 lakh per 10 grams on June 1 to Rs 1.41–1.42 lakh by June 29, according to IBJA data.
While this correction in gold may be causing concerns among investors, according to experts, investors should avoid reacting to short-term price fluctuations. Instead, they should continue their investment discipline and have a long-term approach.
Gold ETFs Down 10% This Month
Major gold ETFs have corrected by nearly 10 per cent this month, mirroring the decline in yellow metal prices in both futures and spot gold markets.
Gold ETF | Performance (1-Month) |
|---|---|
Bandhan Bank Gold ETF | Down 9.31% |
HSBC Gold ETF | Down 9.33% |
Tata Gold Exchange Traded Fund | Down 9.35% |
Union Gold ETF | Down 9.35% |
Groww Gold ETF | Down 9.36% |
Motilal Oswal Gold ETF | Down 9.36% |
Should You Buy or Hold Gold ETFs?- Expert Take
According to Satish Dondapati, Fund Manager, ETF, Kotak Mutual Fund, existing investors are encouraged to hold their positions, while those looking to increase their exposure may consider adding to their investments gradually.
“The recent fall in gold prices may look worrying, but investors should avoid making quick decisions. Gold remains an important part of a diversified portfolio and can help during periods of market and economic uncertainty. Existing investors can continue to hold their gold ETFs, while those looking to invest may consider adding exposure gradually at lower levels. Rather than focusing on short-term price movements, investors should stay aligned with their long-term goals and maintain gold exposure within a diversified portfolio (typically 10–15% depending on individual risk profile),” said Dondapati.
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Gold ETFs saw record outflows of Rs 725 crore in May, mainly due to profit booking after gold prices touched record highs.
“ Investors chose to lock in gains, while some shifted money to other asset classes in search of better returns. Expectations of higher interest rates and a stronger U.S. dollar also reduced the short-term attractiveness of gold investments,” Dondapati noted.