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%

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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. 

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