Gold, silver ETFs slide up to 4% on Dhanteras as oil rebound stokes rate fears. Should you buy this dip?

Gold and silver exchange-traded funds (ETFs) fell by up to 4% on Friday, tracking a sharp decline in precious metal prices on the Multi Commodity Exchange (MCX). A surge in crude oil prices following fresh attacks reignited inflation concerns and fuelled expectations of a possible US Federal Reserve rate hike, putting pressure on gold and silver prices.

Investors are now awaiting the US non-farm payrolls report for fresh cues on the Fed's interest rate trajectory.

Nearly 26 gold ETFs declined between 2% and 3% on Friday. Nippon India ETF Gold BeES, the largest gold ETF by assets under management, fell 2% to hit an intraday low of Rs 115.61.


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Nearly 19 silver ETFs were available during the period, of which 360 ONE Silver ETF fell the most, by around 4%. Around 16 silver ETFs, including HDFC Silver ETF, SBI Silver ETF and Nippon India Silver ETF, slipped 3% each. Angel One Silver ETF and Quant Silver ETF declined 2% each on Friday.

Vikram Subburaj, CEO of Giottus, told ETMutualFunds that international spot gold was down 0.6% at $4,063.39 an ounce. It had remained about 4% higher for the week. Silver was up 0.3% at $51.91. Rebounding oil prices have revived inflation concerns, leaving today's US employment report, due at 7 pm IST, an important test of whether the recovery can hold.

“For ETF investors, the recent rebound follows substantial losses. October’s reported category decline was 5.22% for the gold ETF and fund grouping and 17.16% for silver ETFs. existing holders should calculate their allocation again after the correction. Rebalancing makes sense only if the investor still wants that exposure and can finance it without drawing on money needed for near-term expenses”

For fresh buyers seeking diversification, the larger gold allocation in this example materially reduces the damage from a repeat of October’s falls. Silver purchases should fit within that loss budget, he further said.

In the domestic market, MCX silver futures for December 2026 delivery were down by Rs 3,440 to Rs 1,83,700 per kg. Gold futures for December 2026 delivery dropped by Rs 2,300 to Rs 1,41,808 per 10 grams. In the previous session, MCX gold rose half a percent to end at Rs 1.43 lakh per 10 grams. On the flipside, the white metal dropped 0.4% to Rs 1.87 lakh per kilogram.

The US non-farm payrolls report, due later in the day, is expected to offer fresh insights into the health of the labour market and help investors assess the Fed's next policy move.

Meanwhile, two US Fed officials on Thursday called for modest and steady interest rate increases to bring inflation back towards the central bank's target, according to a Reuters report. These were among the first comments from policymakers following the Democrats' electoral gains in the US, which could have implications for the trajectory of inflation.

In the international market, spot gold dropped 0.4% to $4,040 per ounce, while spot silver dipped 1.5% to $51.42 per ounce.

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,064-4,022 per troy ounce, while resistance is placed at $4,140-4,174. Silver has support at $51.20-50.00 per troy ounce and resistance at $53.50-54.40.

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Jain recommended buying gold in the Rs 1,42,400-1,41,000 range, with a stop loss below Rs 1,40,000 and targets of Rs 1,44,400-1,45,500. For silver, he suggested buying in the Rs 1,86,000-1,83,000 range, with a stop loss below Rs 1,79,800 and targets of Rs 1,91,100-1,94,400.

He advised investors holding long positions in gold and silver based on his earlier recommendations to maintain the prescribed stop losses and book profits near the stated target levels.

(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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