Gold, silver ETFs tumble up to 8% on Fed’s hawkish stance. Is it time to buy the dip?

Silver and gold commodity-based ETFs fell up to 8% on Thursday after the US Federal Reserve kept its benchmark interest rate unchanged at 3.5%–3.75% and maintained a hawkish stance, signalling reduced urgency for further rate cuts.

Kotak Silver ETF and Edelweiss Silver ETF slipped the most, around 8% each, and hit their day’s low of Rs 22.14 and Rs 229.45, respectively. The other 16 ETFs slipped 7% each on Thursday.

Gold ETFs, which went down upto 4%, have extended their losses and slipped further to 5%. There were 25 ETFs based on gold which fell between 4% to 5%.


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Rishi Raj Deva, Associate, Kredere Wealth, told ETMutualFunds that Gold at ~$4,716 has now broken decisively below the $5,000 support it was holding ahead of the Fed meeting, with the hawkish hold and unchanged one-cut dot plot removing a key floor for the metal.

He added that Silver at ~$71.20 has taken the sharper hit — down roughly 10% in two sessions — as the rate-sensitive industrial trade unwinds faster than the war hedge bid can absorb.

“Brent pushing toward $115 on Iran's retaliatory strike on Qatar's LNG facility adds to the stagflation read, but with Powell signalling inflation progress is stalling, the metals market is now pricing a higher-for-longer regime into a war economy,” Deva mentioned.

Anup Bhaiya, Founder of Money Honey Wealth Services, shared with ETMutualFunds that yesterday, gold dipped below $5,000 and silver fell sharply to around $77–$79 amid hotter inflation data and a stronger dollar ahead of the Fed decision.

For investors, this correction offers a compelling entry point—precious metals' safe-haven appeal and inflation-hedging role remain intact amid persistent global uncertainties, he added.

MCX silver futures due May 2026 were trading at Rs 2,31,964 per kg. Meanwhile, gold futures for April 2026 delivery were trading at 1,47,663.

In the international market, yellow metal prices edged higher on Thursday. Spot gold rose 0.8% to $4,856.82 per ounce as of 0115 GMT, after falling earlier to its lowest level since February 6. The metal had declined 3.7% in the previous session. Meanwhile, spot silver advanced 1.5% to $76.52 per ounce.

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For investors today, the best move is to stay disciplined and continue your SIPs regardless of short-term market noise. Since the market is currently experiencing volatility due to global geopolitical tensions, stopping your investments now would mean missing out on the opportunity to buy more units at lower prices, a benefit known as rupee cost averaging, Abhishek Bhilwaria, BhilwariaMF, AMFI registered MFD, told ETMutualFunds.

Instead of trying to time the "bottom," focus on your long-term financial goals and consider a diversified portfolio with a healthy mix of large-cap and flexi-cap funds. If you have extra cash, avoid a single lump-sum entry; instead, stagger your investments over the next few months to smooth out your purchase price while the market stabilises, he further added.

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