Physical market participants also noted the effect of coronavirus-related restrictions on gold trading A surge in inflows coupled with Covid-19 related disruption in gold vaults may force India’s Gold Funds and ETFs to temporarily halt further money from coming in.
SBI Mutual Fund has already halted fresh lumpsums from coming into SBI Gold Fund and will also stop ongoing Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) into the scheme from 6 April.
The AMC cited a closure in the vaults by its storage provider as the reason for stopping inflows. “The physical gold is held in vaults through our custodian.