What are Gold ETF Funds?

An ETF is an Exchange Traded Fund, meaning it is traded on the major stock exchanges similar to stocks.

They enable investors to gain broad exposure to indices or defined underlying asset (commodity) with relative case, on a real-time basis, and at a lower cost than any other forms of investing.

Gold ETFs provides investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that participation through the trading of a security on stock exchanges.

Gold ETF would be a passive investment; so, when gold prices move up, the ETF appreciates and when gold prices move down, the ETF loses its value. It tracks the performance of Gold Bullion.

Some of the gold ETFs available in India:

1. Gold Benchmark ETF (GOLDBEES.NS)

2. Kotak Gold ETF (KOTAKGOLD.NS)

3. Quantum Gold ETF (QGOLDHALF.NS)

4. Reliance Gold ETF (RELGOLD.NS)

5. SBI Gold ETF (SBIGETS.NS)

6. UTI Gold ETF (GOLDSHARE.NS)

Factors Affecting Crude Oil Prices

Worldwide Oil production is controlled by OPEC (Organization of the Petroleum Exporting Countries). Over period, OPEC controls the price of the crude oil and tries to keep it at $30/barrel. However, due to a number of factors oil price has gone beyond $50 per barrel.

This article describes some of the important factors which are affecting the global price of the Crude Oil.

1. Global changes in Supply and Demand. Fundamentally, a commodity price is governed by supply and demand paradigm. If the production rate is constant and demand of the commodity increases then price of the commodity will shoot up. On the other hand, if there is a surplus, price will go down.

2. Global Equity Market. Crude oil prices are dependent on the sentiments of the global equity market. How the stocks are performing is also a major factor in deciding the oil prices.

Dow Jones Industrial Average Index, NASDAQ and NYSE are few which governs the US equity market and hence the oil prices as well. Apart from US, China and European market also controls the oil prices.

3. DX Movement. Movement in Dollar index also changes the oil prices on daily basis. When dollar will go up, oil prices will go down and vice versa.

4. OPEC production report. Team of OPEC decides the production of oil and that is also a deciding factor in oil prices.

5. Fuel demand of US. As US is the biggest consumer of the crude oil, therefore, demand pattern of US also has an impact on the oil prices.

6. EIA report. EIA (Energy Information Administration) provides a weekly report on the crude oil inventory of US. Despite the fact that the report does not reflect very correct figure of oil inventory of US as the reporting methodology used by EIA are very old but still market reacts to that.

7. Labor Deptt Report. US labor deptt also comes out with a unemployment report which tells the unemployment rate in US. If more people will sit at home because of unemployment, then they will not be spending money for buying fuel and therefore, crude oil price will go down.

8. Wars, Recession and Natural Disaster are some other important factors that also greatly affects oil prices.



9. Other report (if there is any coming in US, China or in Europe)

Links:

http://money.cnn.com/data/markets/
http://www.bloomberg.com/markets/stocks/world-indexes/
http://www.ibtimes.com/forex/tools-charts/economic_calendar.htm

http://www.oilprice.com/

http://www.oilprices.com/