Gold and silver ETFs slip up to 3% as rising crude prices dampen rate cut hopes. Is it time to buy or wait?

Gold and silver ETFs slipped up to 3% on Friday as precious metal prices opened slightly lower on the Multi Commodity Exchange of India. The decline came as surging energy prices reduced expectations of near-term U.S. interest rate cuts.

The rising oil prices have heightened inflation concerns, creating uncertainty about the Federal Reserve’s ability to lower rates if energy costs remain elevated, which has partly offset gold’s safe-haven appeal.

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On Friday, the silver ETFs declined between 2% to 3%. Out of 18 ETFs in the category, 10 ETFs slipped 2% whereas the other eight declined by 3%.

Among the 25 gold ETFs, SBI Gold ETF and Groww Gold ETF declined by 3% each whereas the other ETFs fell between 1% to 2% on Friday.

Anup Bhaiya, Founder, Money Honey Wealth Services shared with ETMutualFunds that gold dipped to Rs 600/10g and silver fell Rs 10,000/kg amid volatility. In the current bullish environment with global uncertainties, investors should buy dips, hold long-term for portfolio diversification, and monitor supports at Rs 1,58,000 (gold), Rs 2,63,000 (silver).

MCX silver futures due May 2026 were down Rs 1,961 or 0.7% to Rs 2,66,001 per kg. Meanwhile, gold futures for April 2026 delivery fell Rs 507 or 0.3% to Rs 1,59,764 per 10 grams.

In the international market, gold prices edged higher on Friday. Spot gold rose 0.8% to $5,118.75 per ounce as of 0234 GMT, while U.S. gold futures for April delivery were largely unchanged at $5,123.30. Meanwhile, spot silver gained 1.4% to $84.96 per ounce.

Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile in today’s session amid fluctuations in the dollar index, the US-Iran war and volatility in crude oil prices.

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Jain also said that silver prices may hold their support level of $78.00 per troy ounce, while gold could also maintain support at $5,000 per troy ounce on a closing basis this week.

Jain advised traders to operate within the given price ranges in bullion, while long-term investors can accumulate on price dips in a staggered manner.

(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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