Gold Exchange Traded Funds are on the fast ride with shining yellow metal.COMEX Gold rose to a new 28 year high 15 October 2007 as soaring crude oil prices assisted the yellow metal. Spot gold in London closed at $758.85, gaining $9.35 an ounce. Local gold prices also continued to rally, adding Rs 75 to close at Rs 9650 per 10 grams in Mumbai for the 0.999 variety. With this UTI Gold ETF on 15 October 2007 was Rs.970.21, which showed rise of 1.09% over NAV prevailing on 12 October 2007. NAV of Gold ETF-G of Kotak Mahindra on 15 October 2007 increased 0.91% to Rs. 971.49 over NAV on 12 October 2007. Gold BeES of Benchmark Mutual Fund followed it with its NAV of Rs. 968.79 gaining 0.90% over 12 October 2007.  

UTI Gold ETF and Gold BeES provided 9.57% and 9.53% respectively during the three months ended 15 October 2007. Gold BeES has posted 2.15% six months returns ended 15 October 2007. Kotak Gold ETF launched in July posted 3.78% one month return almost equivalent to one month returns of UTI Gold ETF and Gold BeES which was 3.79% and 3.77% ended 15 October 2007.

Performance of Gold ETFs is fascinating mutual fund houses. Recently Reliance Mutual Fund has launched Reliance Gold ETF. The NFO opened for subscription on 15 October 2007 and closes on 1 November 2007.

Gold which initiated the new session of the week with gains, consolidated its position till the end. The benchmark December expiry contract of Gold on MCX closed with gains of Rs 74 or 0.77% in intra day at Rs 9663 per 10 grams, the contract also broke its Resistances of 9655 levels. Rally to 9700 levels now seem quite likely for Gold. 

Outlook
COMEX Gold futures climbed more than $8 an ounce Monday, sending the December contract to the highest level a front-month futures contract has seen since 1980. For the week, Gold has still gained $6.60. The all-time high for a benchmark gold contract on NYMEX stands at $875, which it set on 21 January 1980. 

Dollar became weak against the EURO ahead of the G7 meet due this weekend. The same lost to 1.4201 against the EURO. Meanwhile in Domestic markets RBI is keeping a check on appreciation of Rupee against the greenback by entering into Futures Currency Swaps. Rupee is trading at 39.35 against the Dollar. 

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