NAV's Of Gold ETF's Rise With Slow Pace

Gold advanced on 17 October 2007, as the dollar fell in the wake of data that showed tame core inflation and a sharp drop in housing starts, while oil's rise to a new intraday record of $89 a barrel also kept gold prices high. Spot gold in London closed at $762.50, gaining $5.75 an ounce on 17 September 2007. However, gain in NAV's of gold ETF's was less than gain on 16 October 2007 as trading in the currency market was mixed with the greenback holding steady near recent levels against the majors. NAV of Gold ETF-G of Kotak Mahindra on 17 October 2007 increased 0.67% to Rs. 985.49 over NAV on 16 October 2007. UTI Gold ETF on 17 October 2007 was Rs.984.19, which showed rise of 0.66% over NAV prevailing on 16 October 2007. Gold BeES of Benchmark Mutual Fund followed it with its NAV of Rs. 984.19 gaining 0.67% over 16 October 2007.

UTI Gold ETF and Gold BeES provided 12.18% and 12.13% respectively during the three months ended 17 October 2007. Gold BeES and UTI Gold ETF both have posted 4.43% six months returns ended 17 October 2007. Kotak Gold ETF launched in July posted 4.72% one-month return almost equivalent to one month returns of UTI Gold ETF and Gold BeES which was 4.73% and 4.72% ended 17 October 2007.This should further trigger the bullion.

The yellow metal rose in Asia today as the dollar is approaching near its lifetime low levels versus the Euro, while the rise in the crude oil to a record $89 touched yesterday is keeping the metal at almost three-decade high levels. Dollar is trading near its life time low of 1.4283 euro, after the reports yesterday showed that the housing slump deepened last month. It is currently exchanged at 1.4236 versus the single currency.