IMPACT OF COVID 19 ON PERFORMANCE OF GOLD ETFS IN INDIA

Abstract

People invest in gold because they view it as a valuable economic resource, they can use to supplement their income. COVID-19 pandemic and economic lockdowns are likely to support consumer demand for gold performance in the short term. If the economy recovers quickly and the stimulus measures are in place for a long period of time, Gold’s behaviour may be affected. The GDP growth rate in India has been trending downward. Consumer spending on non-essentials fell in this environment. COVID19's outbreak in March only served to amplify this trend. People are becoming more cautious with their money. Indian and international gold demand is expected to be high, according to a recent study. The Covid -19 pandemic lowered the demand for gold for a short period of time. The demand for investment is increased as a result. This paper is a study of the Performance Evaluation of Gold ETFs in India during the Covid-19 Pandemic Situation. Knowing how behavioural biases affect investor preference for gold exchangetraded funds (ETFs), Investing in gold requires an understanding of the psychological aspects of the process. Assessing how gold ETFs demand changes during the pandemic is essential for figuring out why investors are becoming so irrationally bullish on gold.