Gold, Silver ETFs Today: Gold ETFs came under pressure on Friday, with most funds trading lower amid weakness in the underlying precious metal.
Nippon India Gold BeES, the most actively traded gold ETF, fell 0.67%, while Invesco India Gold declined 1.31%. Other major gold ETFs, including ICICI Prudential Gold, SBI Gold, HDFC Gold and Axis Gold, slipped between 0.66% and 0.76%.
Silver ETFs saw sharper declines, with ICICI Prudential Silver falling as much as 3.09%, while another quote for the ETF showed a 2.72% decline.
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Gold ETFs Fall; Invesco India Gold Down 1.31%
Among gold ETFs, Invesco India Gold was the biggest loser, declining 1.31%. SBI Gold fell 0.76%, while Axis Gold and Birla Sun Life Gold declined 0.72% each. HDFC Gold and ICICI Prudential Gold slipped 0.71% and 0.69%, respectively.
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Nippon India Gold BeES, which recorded the highest trading volume among the gold ETFs shown, fell 0.67% to Rs 125.36.
Other declines included Kotak Gold (-0.67%), UTI Gold (-0.66%), Quantum Gold (-0.61%) and IDBI Gold (-0.26%).
Silver ETFs Under Greater Pressure
Silver ETFs witnessed a steeper sell-off. ICICI Prudential Silver declined 3.09% to Rs 226.45 in one quote, while another quote showed the ETF down 2.72% at Rs 227.14.
The sharper fall in silver comes as the precious metal has also faced pressure in global markets. Reuters reported that spot silver was down around 4% for the week, while gold was headed for its third consecutive weekly decline.
Why Are Gold And Silver Prices Falling?
Precious metals have come under pressure as expectations of a US Federal Reserve rate hike have strengthened. US producer prices rose 0.4% in August, leading traders to increase bets on a rate hike at the Fed's upcoming meeting. Higher interest rates and Treasury yields tend to weigh on non-yielding assets such as gold and silver.
Markets were also awaiting the US Consumer Price Index (CPI) data on Friday, which could provide further clues on the Fed's interest-rate trajectory.
Gold Price Today
At the time of the quoted market data, gold prices were down 0.47% at $4,386.70 an ounce.
The precious metal has been under pressure this week, with Reuters reporting that spot gold was on track for a third consecutive weekly decline as stronger rate-hike expectations lifted the dollar and bond yields.
Is The Bullion Rally Losing Steam?
The latest ETF moves point to a near-term cooling in investor appetite for bullion, particularly silver. Gold ETFs have largely seen declines of less than 1%, although individual funds such as Invesco India Gold have fallen more sharply. Silver ETFs, meanwhile, have recorded losses of more than 3%.
The key trigger for bullion prices now remains the US inflation data and its impact on expectations for the Fed's next policy move. A hotter-than-expected CPI reading could put further pressure on gold and silver through higher yields and a stronger dollar.
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