Gold, Silver ETFs Slide As Precious Metals Correct Sharply; Silver Funds Fall Ov ...
Investors in precious metal exchange-traded funds (ETFs) suffered sharp losses on Monday as a steep decline in global gold and silver prices triggered a sell-off across domestic bullion-linked funds, with silver ETFs emerging as the worst hit.Most gold ETFs declined between 2 and 3 per cent, while silver ETFs tumbled more than 6 per cent as prices of the underlying commodities came under significant pressure.
Among gold-focused funds, Axis Gold ETF fell more than 3 per cent. Other major schemes, including Nippon India ETF Gold BeES, SBI Gold ETF, HDFC Gold ETF and ICICI Prudential Gold ETF, declined between 2.5 and 2.7 per cent.
The correction was significantly steeper in silver-linked products. HDFC Silver ETF dropped 6.42 per cent, while Nippon India Silver ETF, ICICI Prudential Silver ETF, SBI Silver ETF and Tata Silver ETF each fell by more than 6 per cent.
The weakness followed a sharp correction in precious metals during the previous trading session.
Market experts noted that gold has slipped below key short- and medium-term moving averages, pointing to a moderately bearish trend. However, prices remain above long-term support levels, suggesting the broader uptrend has not yet been decisively broken.
Silver faced even stronger selling pressure. After hitting a lower circuit of nearly 6 per cent on Friday, the metal extended its decline at Monday’s open. Analysts observed that the Gold-Silver ratio has risen above 63:1, indicating that silver is substantially underperforming gold. Unless technical reversal signals emerge, silver could remain under pressure in the near term, they said.
The decline in precious metals comes amid changing global risk sentiment, elevated crude oil prices and fading expectations of a near-term US-Iran peace agreement. These factors have supported the US dollar, reducing the appeal of non-yielding assets such as gold and silver and contributing to the weakness across commodity markets.
The sharp correction also highlights the volatility inherent in commodity-linked ETFs, particularly silver funds, which tend to exhibit larger price swings than their gold counterparts during periods of market stress.
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