- Gold and silver ETFs rebounded sharply after three sessions of sell-off on MCX
- Silver futures rose nearly 6%, reaching Rs 2,50,000 per kilogram on March 5 delivery
- Gold futures gained about 3%, trading at Rs 1,48,300 per 10 grams for April 2 delivery
Gold and silver ETFs rebounded sharply on Tuesday, after three consecutive sessions of sell-off, as fresh buying interest emerged at lower levels on the MCX, supporting a recovery in domestic and global precious metal prices.
On the commodities front, silver outperformed gold. MCX silver futures for March 5 delivery surged nearly 6%, rising Rs 13,739 to trade at Rs 2,50,000 per kilogram. Gold futures for April 2 delivery also moved higher, gaining Rs 4,309 or about 3% to Rs 1,48,300 per 10 grams. The rebound came as investors stepped in after recent corrections, viewing the lower levels as attractive entry points. In addition, the US-India trade deal added to the sentiment.
Silver ETFs saw the strongest gains during the session. The 360 ONE Silver ETF led the rally, jumping around 13% to a day's high of Rs 256 from its previous close of Rs 234. Zerodha Silver ETF advanced 11% to Rs 26.39 from Rs 23.7. Other silver ETFs, including those from Mirae Asset, HDFC, UTI, Kotak and SBI, rose up to 10% each, broadly tracking the sharp recovery in silver prices.
Gold ETFs also witnessed a solid bounce, though gains were relatively modest compared to silver. Union Gold ETF topped the category with a rise of nearly 10%, followed by Bandhan Gold ETF, which advanced around 8%. Motilal Oswal Gold ETF, Nippon India Gold ETF, Mirae Asset Gold ETF and several other gold ETFs gained up to 5% during the session.
Global cues also supported the rebound in precious metals. In international markets, spot gold climbed 3.7% to $4,837.16 an ounce by 0120 GMT, recovering from a near one-month low hit in the previous session. Gold had touched an all-time high of $5,594.82 last Thursday before correcting. Spot silver jumped 5.9% to $84.09 an ounce, rebounding after hitting a record high of $121.64 last week, highlighting the metal's heightened volatility.
Commenting on the broader macro environment, Ross Maxwell, Global Strategy Operations Lead at VT Markets, said that the announcement of a reduction in tariffs on Indian goods, from 50% to around 18%, could improve global trade sentiment and support India's export-oriented sectors. Lower tariffs may ease cost pressures for exporters in textiles, engineering goods, chemicals and manufacturing, boosting competitiveness in the US market and supporting corporate earnings and employment.
From a metals perspective, Maxwell noted that gold and silver are likely to balance between lower trade-related risk aversion and ongoing macro uncertainty. While easing trade tensions could limit fear-driven buying, gold remains supported by concerns around inflation, currency stability and geopolitics. Silver, meanwhile, stands to benefit from both its safe-haven role and stronger industrial demand linked to improving global trade.
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