Gold prices have begun to decrease due to reduced tensions between India and Pakistan, along with the easing of trade concerns between the US and China. In Delhi, gold bullion rates reached ₹91,600 per 10 grams on May 15, while in Mumbai, prices hit ₹91,700 per 10 grams. Approximately a month prior, gold prices had neared ₹one lakh. Several factors had previously driven gold prices up, including the US trade war with China, recession fears, and a weakened US dollar. Now, with trade worries subsiding, gold prices are declining, having already dropped about 9 percent from their recent highs.

This price correction presents a favorable buying opportunity for investors seeking exposure to this safe-haven asset. According to Deepak Aggarwal, a chartered accountant and financial advisor based in Delhi, this is an opportune time for investors who have been waiting to invest in gold, as the price correction allows them to consider gaining exposure to this precious metal.

For those looking to invest in gold and capitalize on potential future price increases, investing in digital gold is recommended. Financial advisors generally advise against investing in physical gold, as it is often viewed as consumption rather than investment due to associated storage costs and making charges, which can offset potential gains. Sridharan S., founder of Wealth Ladder Direct, suggests opting for gold ETFs to avoid these additional expenses and retain all potential gains.

Gold ETFs (Exchange-Traded Funds) are designed to track domestic physical gold prices. These passive investment instruments are based on gold prices and invest in gold bullion. Gold ETFs represent physical gold in dematerialized form, with one Gold ETF unit equivalent to 1 gram of gold backed by physical gold of high purity. Gold ETFs combine the flexibility of stock investment with the convenience of gold investments.

Gold ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE), similar to company stocks. They can be bought and sold at market prices, providing a convenient way for investors to gain exposure to gold without the burdens of physical storage and making charges.