Gold and Silver ETF Performance and Market Drivers

Gold and silver exchange-traded funds were hit hard in early Friday trading. Selling pressure was intense across the board, reflecting a general weakness in international precious metal prices right off the bat. Gold ETFs dipped around two to two and a half percent. Silver funds, though, took a much bigger dive plunging over five percent as global investors reacted sharply to things happening with the US dollar and that hawkish tone coming from the Federal Reserve.
As of 9:55 am, folks in India saw these steep declines across both gold and silver funds. The silver ETFs really bore the brunt of the sell-off, obviously.
Gold ETFs kept sliding too. International gold was already on track for a third week straight decline. For instance, Nippon India ETF Gold BeES dropped 2.44%, settling at Rs 119.14 on the NSE. SBI Gold ETF fell 2.53% to Rs 122.77.
Then you had the others. ICICI Prudential Gold ETF slipped 2.50% to Rs 123.23. HDFC Gold ETF was down 2.37%. Mirae Asset Gold ETF dropped 2.44%, hitting Rs 140.10. Birla Sun Life Gold ETF also fell 2.37% to Rs 126.87.
And the rest of them followed suit. Tata Gold ETF lost 2.30% to Rs 14.01. Groww Gold ETF lost 2.29% to Rs 14.08. Zerodha Gold ETF dropped 2.45%, landing at Rs 22.66. Angel One Gold ETF declined 2.03% to Rs 13.48.
The weakness wasn't just gold, though. Silver ETFs saw even steeper losses reflecting a sharp correction in global silver prices. Nippon India Silver ETF plummeted 5.17% to Rs 218.10 on the NSE. HDFC Silver ETF dropped 5.31% to Rs 217.69. ICICI Prudential Silver ETF was down 5.27%, reaching Rs 227.70. SBI Silver ETF fell 5.17% to Rs 223.19.
Axis Silver ETF slipped 5.26% to Rs 226.38. Zerodha Silver ETF lost 5.28% to Rs 23.16. Kotak Silver ETF dropped 5.23%, ending at Rs 22.11. Tata Silver ETF also took a hit, dropping 5.18% to Rs 22.13. Groww Silver ETF declined 5.14% to Rs 22.35. Angel One Silver ETF lost 4.68%, down to Rs 8.75.
The broader slide in silver ETFs really amplified the pain for domestic investors because international silver prices fell harder than gold did.
Over in the international market, things were moving against them too. Spot gold actually fell 1.1% on Friday, hitting $4,163.93 per ounce and continuing its downward trend for the week. US gold futures for August delivery slipped 1.5%, settling at $4,181.20 per ounce.
The main push behind all this was the resurgence of the US dollar. It climbed to a one-year high, and that just makes gold and silver more expensive when you hold them in other currencies. Demand naturally dropped off.
On top of that, the Federal Reserve is playing hardball. Policymakers are signaling interest rates might have to stay higher for longer to keep inflation under control. CME FedWatch data shows traders are increasingly pricing in a possibility of another US rate hike later this year.
Higher interest rates inherently hurt gold. It doesn't generate any interest income, so assets that actually pay yields become much more attractive instead.
Sentiment around gold took another hit too. Goldman Sachs lowered its year-end price forecast for gold to $4,900 per ounce. They also admitted they don't expect the Federal Reserve to cut rates this year. Market players are now just watching US economic data and Fed comments really closely. That’s where the next move in gold and silver prices will probably be decided.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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