Gold, Silver ETF Purchases Halted: Why Mutual Funds Have Restricted Fresh Investments Before Diwali

Several mutual fund houses have temporarily restricted fresh investments in gold and silver ETF fund of funds, including new SIPs, lump-sum purchases and STPs. With festive demand approaching and gold and silver ETF inflows rising, what prompted this move? Anuj Gupta, Commodity Expert, explains how easier digital investing could shift demand away from physical gold and silver, potentially intensifying market volatility amid lower imports. He believes the restrictions are aimed at managing short-term demand pressures and could be temporary, with services potentially resuming after Diwali. What does this mean for investors looking to invest in precious metals this festive season?