Silver, gold ETFs fall up to 4% as rising crude, rate hike fears hit sentiment. What should investors do?

Silver and gold ETFs fell up to 4% on Thursday as MCX bullion prices opened lower, tracking global weakness after the US Fed’s March meeting minutes signalled support for additional rate hikes amid inflation concerns and risks from the Iran conflict.

Among silver ETFs, HDFC Silver ETF, Kotak Silver ETF, Edelweiss Silver ETF and DSP Silver ETF slipped 4%, while Nippon India Silver ETF, SBI Silver ETF and ICICI Prudential Silver ETF were down around 3%.

Gold ETFs declined up to, with Nippon India ETF Gold BEES witnessing the sharpest drop of 2% in the category.


The drop came a day after these ETFs had gained up to 6% following US President Donald Trump’s agreement to a two-week ceasefire with Iran, which briefly eased inflation worries.

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Anup Bhaiya, founder of Money Honey Wealth Services Ltd told ETMutualFunds that gold surged nearly 3% to around $4,800 and silver jumped over 6% to $77 on Wednesday following the US-Iran ceasefire and easing geopolitical tensions.

For long-term investors, this strong rebound reinforces the metals' safe-haven appeal—current momentum and structural demand make it an opportune time to build or add to positions, he further said.

On the domestic front, MCX silver futures for May 2026 delivery plunged Rs 4,785, or 2%, to Rs 2,35,133 per kg. Gold futures for June 2026 delivery declined Rs 1,229, or 0.8%, to Rs 1,50,647 per 10 grams.

Investors also stayed cautious as they awaited more clarity on the US-Iran ceasefire, with uncertainty over how long it will hold. Ongoing tensions, including Israel’s actions against Hezbollah in Lebanon and Iran’s strikes on regional energy infrastructure, continued to weigh on sentiment.

Markets are now closely tracking upcoming data such as February’s Personal Consumption Expenditures (PCE) figures and weekly jobless claims, which could offer further cues on the Federal Reserve’s policy direction.

In the international market, yellow metal prices were largely steady on Thursday. Spot gold was nearly unchanged at $4,715.42 per ounce as of 0052 GMT, while U.S. gold futures for June delivery slipped 0.8% to $4,739.20. Among other precious metals, spot silver declined 0.4% to $73.83 per ounce.

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Abhishek Bhilwaria, AMFI-registered MFD, shared with ETMutualFunds that investors should approach the precious metals market with a focus on phased allocation and rebalancing, as both gold and silver are currently trading at near-record levels following a powerful rally.

He further mentioned that for those already holding outsized positions, booking partial profits to bring allocations back to a recommended 5–15% range is advised to mitigate the risk of a potential correction. New investors should avoid concentrated lump-sum entries at these all-time highs and instead use Systematic Investment Plans (SIPs) via Gold ETFs or Sovereign Gold Bonds to average costs over time.

(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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