Gold And Silver ETFs Crash Up To 16% Amid Decline In Precious Metal Prices

A surge in profit-booking, coupled with the US dollars strength, has underpinned the recent fall in gold and silver ETFs.

Advertisement
Read Time: 3 mins

Gold and silver continued their steep slide on the MCX, with futures tumbling 6% at the open on Feb. 1. Gold ETFs mirrored the decline, tumbling as much as 16% in early trade on Sunday. Gold futures for April delivery fell up to 6%, losing Rs 9,140 per 10 grams to open at Rs 1,43,205. This steep decline follows a nearly Rs 50,000 drop (26%) over just three sessions, after prices touched a record high of Rs 1,93,096 per 10 grams.

Silver futures for March delivery tumbled around 6%, shedding Rs 17,515 per kilogram to open at Rs 2,74,410. Over the last three sessions, the contracts have plunged Rs 1,45,638, or 35%, following a record high of Rs 4,20,048 per kg.

Advertisement

Gold and silver declined sharply as investors engaged in heavy profit-taking, while a stronger US dollar added to the pressure. The market also took note of US President Trump's decision to appoint Kevin Warsh, a former Federal Reserve governor known for his hawkish approach to rate cuts, to lead the central bank.

ALSO READ: Gold, Silver Price Today, Feb 1 — Check Prices In Mumbai, Delhi, Chennai, And Other Cities

The crash in ETF prices assumes significance as Finance Minister Nirmala Sitharaman presents 2026 Union Budget.

Baroda BNP Paribas Gold ETF plunged 16% to Rs 135.20 per unit, with Motilal Oswal Gold ETF also tumbling close to 16%. Other major funds, including Edelweiss Gold ETF, LIC MF Gold ETF and Birla Sun Life Gold ETF, fell over 15% each.

Advertisement

The Nippon India ETF Gold BEES fell 11.8% to hit a low of Rs 115.66 apiece in early trade. It was trading 5.81% lower at Rs 123.50 per unit at 10:45 a.m. on the NSE.

The HDFC Mutual Fund-HDFC Gold Exchange Traded Fund plunged 12.4% to a low of Rs 119.36 per unit. As of 10:48 a.m., it was trading 6.65% lower on the NSE at Rs 126.83 apiece.

Advertisement

Bandhan Silver ETF dropped over 19%, while Motilal Oswal and Zerodha Silver ETFs dropped around 15%. Groww Silver ETF and other funds slipped by around 14%.

Gold And Silver Price Today

Gold prices in India on Feb. 1 stand at Rs 16,058 per gram for 24-karat, Rs 14,720 for 22-karat, and Rs 12,044 for 18-karat gold. Silver is trading at Rs 350 per gram, or Rs 3,50,000 per kilogram, as per Good Returns.

Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.

Loading...