New Delhi, June 29 -- Since gold is priced globally in US dollars but gold ETFs in India are valued in rupees, fluctuations in the rupee-dollar exchange rate can significantly influence returns.

So, let's take a look at what experts have to say about the impact of rupee movements on gold ETF returns.

Gaurav Arora, Head of Research, Sahi, said, "When you invest in a Gold ETF in India, you're making two bets simultaneously-one on gold and one on the rupee."

He illustrated the impact with an example. Suppose international gold prices remain unchanged at around $4,067 per ounce over the next two months. An investor buying gold in the US would earn no return because the dollar price has not moved.

However, if the rupee weakens from Rs.94.3...