In futures markets, gold prices in India are up around 20% so far this year.
Gold-backed ETFs are passive investment instruments that are based on price movements and investments in physical gold.
Reflecting investor appetite for gold, which typically considered a safe-haven, in times of economic uncertainty, holdings of the world’s largest gold-backed exchange-traded fund or ETF, SPDR Gold Trust , rose 0.5% to 1,135.05 tonnes on Thursday, its highest in over seven years.
"The safe haven buying into the ETFs has continued to go up. Hence the sentiment is likely to be positive on the yellow metal," said Jigar Trivedi, research analyst at Anand Rathi Shares & Stock Brokers on Gold.