Gold ETFs surge up to 9% to fresh record highs as yellow metal’s Feb futures cross Rs 1.5 lakh/10 grams: What lies ahead?

Gold ETFs surge

• Gold prices reach record highs amid US-EU tensions over Trump's Greenland proposal
• Gold ETFs surged, with Tata Gold ETF jumping nearly 9 percent to a 52-week high
• US tariffs on Europe and geopolitical risks drive gold's record bull run

Did our AI summary help?

Gold exchange traded funds (ETFs) continued to mirror the sharp surge in gold prices and hit fresh lifetime highs on January 20. Experts have commented on what lies ahead for the precious metal after the record bull run.

Gold prices hit fresh lifetime highs today, as tensions between US and EU simmered over President Donald Trump’s constant threats to annex Greenland. Gold futures with February expiry gained more than 3 percent to hit a fresh all time high of Rs 1,50,360 per 10 grams.

The future contracts with April and June expiries meanwhile surged around 5 percent each to hit new all-time highs of Rs 1,58,200 per 10 grams and Rs 1,62,299 per 10 grams respectively. Gold futures with August expiry climbed nearly 3 percent to Rs 1,61,925 per 10 grams.

Spot gold surged past $4,700 an ounce on Comex.

Why are gold prices rising?

Geopolitical tensions have surged recently after Trump imposed new tariffs on eight European nations over his push to acquire Greenland. Trump imposed 10 percent tariffs on imports from European countries, starting February 1. The tariffs would increase to 25 percent on June 1 and continue until a deal is reached for the US to acquire Greenland.

Trump on Monday did not rule out the potential use of military force. European leaders have rejected Trump's demands, while some nations also warned of retaliatory economic measures against the US.

"Trump's 'disruptive' policy approach to international affairs and desire to see lower interest rates suit precious metals very well, ⁠as reflected by gold and silver's rampant run," Reuters quoted Tim Waterer, KCM Trade's chief ‍market analyst, as saying.

Gold ETFs:

Tata Gold ETF jumped nearly 9 percent to hit a fresh 52-week high of Rs 15.35 apiece. Choice Gold ETF and LIC MF Gold ETF meanwhile gained around 5 percent to their respective record highs.

Zerodha Gold ETF and Angel One Gold ETF rose more than 4 percent each, while Edelweiss Gold ETF, Bandhan Gold ETF and Mirae Asset Gold ETF gained nearly 4 percent each. UTI Mutual Fund, SBI Gold ETF, Groww Gold ETF, Kotak Gold ETF and others meanwhile also gained nearly 4 percent each.

HDFC Gold ETF, ICICI Prudential Gold ETF, Nippon India ETF Gold BeES and others climbed more than 3 percent each.

What lies ahead?

Based on the fundamentals and technical setup, gold and silver's long-term bullish trend seems intact and still has the potential to deliver extraordinary returns in year 2026, said HDFC Securities. The domestic brokerage however added that in case the government reduces import duties on gold and silver in the upcoming budget, domestic prices could come under pressure and act as a short-term headwind for domestic prices.

HDFC Securities listed out SBI Gold ETF and HDFC Gold ETF as its top picks, and advised investors to allocate 10 percent of their portfolio to precious metals with the option to increase exposure based on individual risk appetite gradually.

"Gold and silver can play a meaningful role in portfolio diversification, but the way investors access these assets matters. Physical metal often brings uncertainties around purity, making charges, storage, and resale, while ETFs require demat accounts that many investors still do not use. The Fund of Fund (FoF) structure removes barriers such as demat requirements, lowers the entry point to ₹1,000, and enables disciplined investing through SIPs starting at ₹100," said Vishal Kapoor, CEO of Bandhan AMC.

"Gold and silver have climbed to record highs as global tensions continue to mount. Markets have been unsettled by Donald Trump’s renewed push to acquire Greenland, alongside U.S. plans to impose tariffs of 10% from February 1 on eight European countries including France, Germany, and the UK, with the threat of rates rising to 25% by June," said NS Ramaswamy, Head of Commodity & CRM, Ventura.

Also read: Silver ETFs surge to record highs