Gold ETFs slide up to 2.3% on Dhanteras as profit‑taking and higher oil prices press gold

Gold ETFs dropped as much as 2.3% on Friday, November 6, as investors booked profit despite the festive Dhanteras day. The sell‑off hit major schemes – ICICI Prudential Gold ETF fell 2.28% to ₹119.79, Nippon India ETF Gold BeES slipped 2.12% to ₹115.65 and Tata Gold ETF lost 1.87% to ₹13.63. All listed gold ETFs, including those from SBI, HDFC, Kotak and DSP, traded lower, with declines ranging between 1.5% and 2.3%. The dip mirrored a fall in international gold prices. Spot gold slipped 0.6% to $4,063.39 per ounce, according to Reuters, after crude oil prices rose and revived inflation worries. Higher oil prices have pushed expectations that US interest rates may stay high for longer, and a stronger US dollar also weighed on the yellow metal. Because gold ETFs track the price of physical gold, any correction in the metal’s price translates directly into their market values.

Context

Gold often retreats when real‑interest rates rise, as investors favour assets that pay interest. The recent oil‑driven inflation outlook and a firm US dollar created an environment where gold’s appeal weakened, leading to the observed ETF sell‑off.