Gold, silver ETFs rise up to 4% as bullion gains amid US-Iran ceasefire, geopolitical reset, dollar weakness

Gold and silver exchange-traded funds (ETFs) traded higher on Wednesday, rising up to 4 percent, tracking gains in global bullion prices as investors reassessed risks following the US-Iran ceasefire and a weakening dollar. The upmove in precious metal ETFs comes even as equity markets rallied sharply, indicating continued investor interest in safe-haven assets amid lingering uncertainty around the geopolitical situation.

Among the top gainers, silver ETFs led the rally, with SBI Silver ETF and Nippon India Silver ETF (SilverBeES) rising over 4.3 percent each, while ICICI Prudential Silver ETF gained around 4.1 percent. Tata Silver ETF also advanced over 4 percent.

Gold ETFs also saw steady gains. ICICI Prudential Gold ETF and SBI Gold ETF rose over 2.3 percent each, while Nippon India ETF Gold BeES gained around 2.4 percent. Tata Gold ETF also traded higher.

The gains follow a rebound in global gold prices, which climbed to near three-week highs as investors weighed the implications of the ceasefire on inflation, currency movements and broader macro stability. Spot gold was up 2.3 percent at $4,812.49 per ounce, earlier in the session. Bullion rose more than 3 percent to ​its highest level since March 19.

While easing geopolitical tensions triggered a sharp fall in crude oil prices and a rally in equities, the decline in the US dollar supported bullion prices, making gold and silver more attractive for investors.

Market participants said the current price action reflects a mixed positioning. Investors are balancing risk-on sentiment in equities with continued allocation to hedges like gold and silver, given that the ceasefire is temporary and subject to further developments.

Silver, in particular, outperformed gold, supported by both safe-haven demand and its industrial usage outlook, especially in a scenario of stabilising global growth expectations.

Analysts said that precious metals could remain supported in the near term, as markets continue to track geopolitical developments, currency movements and central bank signals, even as risk appetite improves in equities.

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