“We also have to view demand in terms of short-term factors and the price movement in the metal,” he said. Between April and August last year, gold in the Indian market had appreciated 30 per cent, while it gained 11 percent this year.

The investment in gold rises usually when its prices remain constant to a certain level. This year, even though the gold prices were floating around 30,000 per 10 gm levels constantly for three months but it did not attract the investors.

“During the same time, the international prices were declining and investors felt that price will correct if the rupee strengthened. However, since mid-August, international prices too started their bull-run and Indian prices have moved up to 33,000 levels. It is difficult for many to catch the rally,” said Tapan Trivedi, senior analyst, JRG Wealth Management reports Mydigitalfc.com.

According to the Fund managers, there could be a rise in the number of investors by the later part of the year. “Investors are awaiting prices to stabilise after the current rally,” said Iyer.

Nambiar believes that the measures taken by the government and the Reserve Bank of India (RBI) to increase liquidity in the market may prompt investments flowing into gold ETFs as well.“ Investors will make use of the corrections in between during the coming months”, he added.