Gold and Silver ETFs Decline on Feb 17, as MCX Precious Metal Futures Weaken Amid Softer Global Signals

Commodity based exchange traded funds linked to gold and silver recorded losses on Tuesday after domestic futures prices moved lower on the Multi Commodity Exchange (MCX).

The decline followed subdued global market signals and reduced participation across Asian markets during holiday closures. 

Weakness in international bullion prices and currency movements also contributed to cautious trading sentiment in precious metals, as per The Economic Times report.

Precious Metal ETFs See Broad-Based Declines

Silver-focused exchange traded funds led the decline during the session, with Edelweiss Silver ETF and ICICI Prudential Silver ETF falling by around 4%. While other schemes such as Kotak Silver ETF, Tata Silver ETF, SBI Silver ETF and DSP Silver ETF recorded losses of up to 2%.

The fall reflected movements in underlying commodity prices, as ETFs tracking metals typically mirror changes in futures markets.

MCX Futures Movement

Precious metal futures traded lower on the MCX, extending losses for a second consecutive trading session. Gold contracts scheduled for April 2026 delivery declined, while silver futures also saw a notable correction after gains in the previous session.

In the prior trading session, gold futures had already weakened modestly, while silver futures had recorded a marginal rise before reversing direction.

Global Market Influence

International bullion prices came under pressure as the US dollar strengthened, making precious metals relatively more expensive for holders of other currencies. 

Currency movements often influence demand dynamics in global gold and silver markets, contributing to short-term price adjustments.

Impact of HolidayThinned Trading

Market participation remained limited as several major Asian financial centres, including mainland China, Hong Kong, Singapore, Taiwan and South Korea, were closed for Lunar New Year holidays. 

Lower trading volumes during such periods can amplify price movements due to reduced liquidity.

Read More: RBI Governor Sanjay Malhotra Highlights Timely Credit Access for MSMEs as Ongoing Policy Focus.

Conclusion

The decline in gold and silver ETFs reflects a combination of softer global cues, currency strength and reduced regional trading activity. While short term volatility remains linked to international market developments, price movements continue to track underlying futures trends in the precious metals segment.

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