Gold and silver ETFs rally up to 11% on easing oil prices, soft dollar. Should you invest now?

Silver and gold commodity-based ETFs surged up to 11% on Wednesday, driven by a weaker dollar, while falling oil prices eased inflation concerns and improved the outlook for global interest rates.

Nippon India Silver ETF, HDFC Silver ETF, and ICICI Prudential Silver ETF gained up to 11% respectively on Wednesday. SBI Silver ETF and Kotak Silver ETF were up 5% each.

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There were 25 gold ETFs which rallied ranging between 3% to 5% on Wednesday. ICICI Prudential Gold ETF gained the most of around 5% to hit day’s high of Rs 124.98 compared to previous close of Rs 119.57.

Anup Bhaiya Founder Money Honey Wealth Services told ETMutualFunds that on Tuesday, gold steadied around $4,410-$4,450 and silver hovered near $68-$70 after a sharp correction phase.

For long-term investors, these levels offer an attractive accumulation window, backed by enduring safe-haven demand, geopolitical uncertainties, and inflation-hedging fundamentals that remain firmly intact, he further added.

While gold and silver witnessed a steep selloff over the previous two sessions, these commodity-based ETFs rebounded up to 7% on Tuesday after crashing up to 20% on Monday.

U.S. President Donald Trump said Washington and Tehran are “currently in negotiations” and suggested that Iran is eager to strike a peace deal, even as the Islamic Republic has denied holding any direct talks with the United States.

MCX silver futures due May 2026 were up Rs 12,196 or 5.4% to Rs 2,36,137 per kg. Meanwhile, gold futures for April 2026 delivery gained Rs 5,522 or 4% to Rs 1,44,434 per 10 grams.

Gold ~$4,600 and silver ~$73.7 edged higher as the US delivered a 15-point peace proposal to Iran via Pakistan, covering nuclear dismantlement, missile curbs, and a guaranteed-open Strait of Hormuz, Rishi Raj Deva Associate Kredere Wealth shared with ETMutualFunds.

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Brent retreated toward $96 on deal optimism and a sustained oil drop would ease inflation, giving the Fed cover to cut rates and drive precious metals higher provided diplomacy holds, Raj Deva further said.

In the international market, yellow metal prices climbed more than 2%. Spot gold advanced 2.5% to $4,587.09 per ounce as of 0218 GMT, while U.S. gold futures for April delivery jumped 4.2% to $4,586.10. A softer dollar made dollar-denominated bullion more affordable for buyers using other currencies. Silver also saw strong gains, with spot prices rising 3.6% to $73.78 per ounce.

(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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