Gold ETFs fall, Silver ETFs tumble up to 4% amid sharp correction in bullion prices

Gold and silver exchange-traded funds (ETFs) declined sharply in morning trade on June 25, tracking weakness in domestic and global bullion prices. Silver ETFs emerged as the biggest losers, falling nearly 4 percent, as silver futures extended their recent correction, while gold ETFs lost around 2 percent.

At around 10:45 am, Nippon India Silver ETF (SilverBeES) was down 3.81 percent at Rs 205.23, SBI Silver ETF fell 3.76 percent to Rs 210.25, ICICI Prudential Silver ETF declined 3.78 percent to Rs 214.05, and Tata Silver ETF slipped 3.74 percent to Rs 20.85.

Among gold-backed funds, ICICI Prudential Gold ETF dropped 1.94 percent to Rs 119.23, SBI Gold ETF declined 1.92 percent to Rs 118.91, Nippon India ETF Gold BeES fell 1.86 percent to Rs 115.37, and Tata Gold ETF was down 1.81 percent at Rs 13.57.

The weakness mirrored a sharp decline in precious metal prices on the Multi Commodity Exchange (MCX). In the morning trade, MCX gold futures for August delivery were down 0.16 percent at Rs 1,41,220 per 10 grams, while MCX silver futures fell 0.96 percent to Rs 2,11,710 per kg.

Silver witnessed extreme volatility at the opening bell. The July futures contract initially plunged by nearly Rs 3,000 to around Rs 2.10 lakh per kg, roughly half of the record high of Rs 4.20 lakh per kg touched in January, before staging a swift recovery to trade above Rs 2.15 lakh per kg within minutes. Despite the rebound, silver prices have fallen by around Rs 17,000 per kg over the first four trading sessions of the week.

Gold futures also opened sharply lower, with the August contract slipping to Rs 1,40,543 per 10 grams before rebounding to nearly Rs 1,42,000. Even after the recovery, gold remains about Rs 5,200 per 10 grams below last Friday’s closing level.

The decline in domestic bullion prices followed continued weakness in international markets. Spot gold extended losses after breaking below the key $4,000-an-ounce mark for the first time in seven months in the previous session. The metal came under pressure as the US dollar remained firm and investors increased bets that the US Federal Reserve could raise interest rates this year to combat persistent inflation, reducing the appeal of non-yielding assets such as gold.

The broader equity market remained firm despite the weakness in precious metals. At around 10.45 am, the Sensex was up 542.78 points, or 0.70 percent, at 77,534.00, while the Nifty 50 gained 153.00 points, or 0.64 percent, to 24,174.65.

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