A brutal Friday sell-off in gold and silver markets sent shockwaves through India’s ETF landscape, with silver funds leading the plunge at up to 24%. The precious metals rout erased billions in investor value, as benchmark ETFs mirrored spot price declines with ruthless efficiency.
Nippon India ETF Gold BeES and ICICI Prudential Gold ETF both lost about 10%, Axis Gold ETF dropped 12%, and others like Tata, HDFC, and UTI Gold ETFs followed suit with double-digit retreats. Silver investors faced steeper pain: Axis Silver ETF cratered 24%, while ICICI Prudential and Kotak Silver ETFs fell 23% each. SBI Silver ETF weakened 22%, with Mirai Asset, HDFC, and Nippon India Silver ETFs also hammered.
Spot prices validated the ETF bloodbath. India Bullion Jewellers Association’s 5 PM quotes showed 24-carat gold slashing 9,545 rupees to 1,65,795 per 10 grams in 24 hours. Silver tumbled 40,638 rupees to 3,39,350 per kg, down from 3,79,988 per kg.
Internationally, Comex gold weakened 3.84% to 5,150 USD/oz, while silver’s 10.56% drop to 102.34 USD/oz underscored the global meltdown. This marks one of the sharpest single-day declines in recent memory, fueled by dollar strength, reduced inflation fears, and technical breakdowns in charts.
Long-term holders may view this as a buying opportunity, but short-term traders are licking their wounds. With US economic indicators looming, the precious metals sector remains on edge, poised for potential rebound or further downside depending on Fed signals.