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Gold ETFs fall 4% in a month ahead of Dhanteras 2026: Is this a buying opportunity? Experts weigh in

By · Published by Everything Blog

In short

All 25 gold ETF schemes tracked on Dhan registered monthly declines between 3.66% and 4.53% leading into the festive season. Despite these drops, domestic gold has generated nearly an 8% gain since the prior Dhanteras, outperforming the Nifty 50. Meanwhile, investor appetite remains resilient, with total domestic gold ETF assets under management expanding from approximately ₹1,58,400 crore in April 2026 to ₹1,91,000 crore in October. Market experts maintain that prolonged central bank purchases and wedding demand will bolster the asset class over the long run.

Key points

  • Gold continues to outperform the benchmark Nifty 50 with nearly an 8% gain since the prev…: Gold continues to outperform the benchmark Nifty 50 with nearly an 8% gain since the previous Dhanteras.
  • Sustained demand from central bank reserve purchases and the wedding season offers downsi…: Sustained demand from central bank reserve purchases and the wedding season offers downside protection for bullion.
  • Investors are advised to accumulate gold ETFs gradually in smaller increments to hedge ag…: Investors are advised to accumulate gold ETFs gradually in smaller increments to hedge against volatility from bond yields and currencies.

Sources checked by our analysis pipeline: 1

Dhanteras is considered one of the most auspicious occasions to buy gold. This year, however, investors are approaching the festive season amid a sharp correction in the yellow metal. Domestic gold prices are hovering around ₹1,42,000 per 10 grams, down more than 20% from their peak of nearly ₹1,80,000.

Geopolitical tensions in the Middle East, a stronger US dollar and elevated interest rates have weighed on gold prices, raising questions about the sustainability of the metal’s long-term bull run. However, continued central bank purchases and sustained inflows into gold exchange-traded funds (ETFs) could support the outlook, according to an Axis Direct report.

Despite the recent correction, gold has delivered a return of nearly 8% since last Dhanteras, significantly outperforming the Nifty 50, the report noted. The recent decline could therefore offer investors an opportunity to reassess their gold allocation as they look to make fresh investments during the festive season.

Investor interest in gold ETFs has remained resilient despite volatility in prices. Gold ETFs attracted approximately $89 billion in inflows in 2025, compared with $3.4 billion in 2024, reinforcing the…

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