A gold exchange traded fund is an open-ended ETF that aims to track the domestic physical gold price. Gold ETFs are financial instruments consisting of units backed by physical gold which may be in paper or demat form. These funds claim to be backed by gold with 99.5% purity. Gold-backed ETF prices are listed on the NSE and BSE and can be traded just like the shares of a company through a demat account and a trading account with any registered stock broker. One gold ETF unit is typically backed by 1 gram of physical gold.