Silver and gold ETFs slip up to 7%. Should you invest now?

Silver and gold ETFs fell as much as 7% on Monday as investors booked profits after Friday’s sharp rally. Gold and silver futures on the MCX also opened significantly lower.

Among major schemes, the Kotak Silver ETF dropped the most, sliding nearly 7% to a day’s low of Rs 220. The Mirae Asset Silver ETF declined about 5%. Other silver ETFs — from DSP, SBI, Nippon India, Edelweiss and ICICI Prudential — were down up to 4% each.

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Motilal Oswal Gold ETF lost around 4% to hit the day’s low of Rs 145 on Monday. This was followed by Zerodha Gold ETF, which declined by 4%. Choice Gold ETF and HDFC Gold ETF fell 2% each.

On Monday, MCX Gold futures due April 2026 were down Rs 1,000 or 0.64% to Rs 1,54,905 per 10 grams. Meanwhile, silver futures for March 5, 2026, delivery edged lower by Rs 8,265 or 3.3% to Rs 2,36,100 per kg.

In the international market, Spot gold fell 0.4% to $5,020.10 per ounce by 0111 GMT after gaining 2.5% in the previous session. U.S. gold ⁠futures for ⁠April delivery lost 0.1% to $5,039.50 per ounce. Spot silver was down 0.6% at $76.92 per ounce, after a 3% rise on Friday.

Manoj Kumar Jain of Prithvi Finmart said that global financial markets are witnessing extremely high volatility due to AI-led shocks and a sell-off in global equity markets. According to him, both precious metals are experiencing sharp price swings.

Jain further said that on MCX, gold has support in the Rs 1,54,400-Rs 1,53,150 range and resistance at Rs 1,56,800-Rs 1,58,200. Silver has support at Rs 2,38,800-Rs 2,32,000 and resistance at Rs 2,49,100 - Rs 2,55,000.

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He further said to buy gold on dips in the Rs 1,54,000-Rs 1,53,300 range, with a stop loss below Rs 1,52,000, targeting Rs 1,56,600-Rs 1,57,500. However, he advised avoiding trades in silver due to very high volatility.

Abhishek Bhilwaria, BhilwariaMF, AMFI Registered MFD shared with ETMutualFunds that major ETFs—particularly those focused on precious metals and technology—are experiencing a downturn due to a combination of stronger-than-expected U.S. jobs data, a rising U.S. Dollar Index, and dampened expectations for near-term interest rate cuts.

"For investors, a disciplined, long-term approach is recommended: rather than panic selling, consider using Systematic Investment Plans (SIPs) or staggered buying to average out entry costs during this period of heightened volatility."

It is also advised to maintain a diversified portfolio where precious metals act as a risk-management tool (typically capped at 5–15% of total holdings) rather than a primary source of short-term returns, Bhilwaria further said

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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