New Delhi witnessed a dramatic downturn in precious metals markets on Friday as gold and silver prices nosedived, triggering steep losses in exchange-traded funds (ETFs). Investors watched in dismay as popular gold ETFs like Nippon India ETF Gold BeES and ICICI Prudential Gold ETF shed around 10% each, while Axis Gold ETF tumbled nearly 12% during the trading session.
The sell-off extended to Tata Gold ETF, HDFC Gold ETF, and UTI Gold ETF, all posting significant declines amid the broader market rout. Silver ETFs fared even worse, with Axis Silver ETF plummeting up to 24%, ICICI Prudential Silver ETF and Kotak Silver ETF slipping 23% apiece, and SBI Silver ETF down 22%.
Mirai Asset Silver ETF, HDFC Silver ETF, and Nippon India Silver ETF also recorded heavy losses, reflecting the intense pressure on silver investments. Domestic prices told a stark story: according to India Bullion Jewellers Association data released at 5 PM, 24-carat gold fell by a whopping 9,545 rupees to 1,65,795 per 10 grams over the past 24 hours.
Silver prices crashed even harder, dropping 40,638 rupees to 3,39,350 per kilogram from the previous level of 3,79,988 per kg. This domestic carnage mirrored global trends, where Comex gold traded at 5,150 dollars per ounce, down 3.84%, and silver plunged 10.56% to 102.34 dollars per ounce as of the latest updates.
Market analysts attribute the sharp correction to a combination of profit-taking after recent rallies, strengthening US dollar, and easing geopolitical tensions that had previously buoyed safe-haven demand. For investors holding these ETFs, the volatility serves as a reminder of the risks in commodity-linked products. As markets digest this blow, eyes are now on upcoming economic data from the US Federal Reserve that could dictate the next move in precious metals.