Gold And Silver ETFs Drop Up To 4% Amid Global Tensions

Gold and silver exchange-traded funds (ETFs) declined on March 27 even though precious metal futures on the MCX moved higher.

Silver ETFs saw the biggest fall:

• Groww Silver ETF fell about 4%
• HDFC Silver ETF dropped around 4%
• DSP Silver ETF slipped nearly 4%
• Kotak Silver ETF declined about 3.7%
• Edelweiss Silver ETF fell around 3.6%

Gold ETFs also weakened slightly:

• Nippon India Gold BeES fell around 1%
• ICICI Prudential Gold ETF slipped about 1%
• Axis Gold ETF declined about 1%

Futures Prices Remained Strong

While ETFs fell, futures prices stayed firm:

• MCX silver rose about 2.75% to around ₹2.26 lakh per kg
• MCX gold gained nearly 2% to about ₹1.43 lakh per 10 grams and hit an intraday high near ₹1.46 lakh

This difference shows a short-term mismatch between ETF prices and futures movements.

Read more: ₹10K SIP For 10 Years: Can Bandhan Infra Fund Deliver ₹27.5 Lakh?

Why Precious Metals Are Volatile

Gold and silver prices are reacting to global uncertainty. Rising tensions between the US and Iran have created market nervousness. A temporary pause in attacks on energy infrastructure has provided some relief, but the situation remains unclear.

Gold usually benefits during uncertainty and inflation fears. However, higher interest rates and cautious policies are limiting strong price rallies.

Conclusion

The recent fall in gold and silver ETFs appears to be a short-term correction rather than a change in fundamentals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.