Investors pull out money from gold ETFs in October to book profit

New Delhi: Investors pulled out a little over Rs 31 crore from gold exchange traded funds (ETFs) in October, after infusing nearly Rs 200 crore in the safe-haven asset in the preceding two months, primarily due to profit booking.

Gold ETFs witnessed a net infusion of Rs 44.11 crore in September and Rs 145.29 crore in August, the first inflow since November last year, when Rs 10 crore was infused in such instruments. Prior to this, gold ETFs had seen a net inflow of Rs 20 crore in October 2016 and before that an inflow of Rs 5 crore was witnessed in such funds in May 2013. Experts attributed the inflows to sudden rally in gold prices, mainly due to uneasy trade negotiations between the US and China and lower than expected global GDP growth. According to the latest data available with the Association of Mutual Funds in India Rs 31.45 crore was pulled out from gold-linked ETFs last month.