Gold, Silver ETF Crash Up To 7%: Tata, HDFC, Nippon India, Kotak To ICICI Prudential | Time To Buy?

Gold, Silver ETF: Gold and silver exchange traded funds (ETFs) saw a sharp decline on Thursday, March 19, as the precious metals saw a sharp decline, followed by the US Federal Reserve outcome. Nippon India ETF Gold BeES, Groww Gold ETF, ICICI Prudential Gold ETF, HDFC Gold ETF, and Axis Mutual Fund ETF fell nearly 6% during Thursday's intraday trading session.

Silver ETFs like Tata Silver Exchange Traded Fund, Nippon India Silver ETF, Groww Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, Kotak Silver ETF, Zerodha Silver ETF, etc., saw an approximate 7% single day decline.

Nippon India ETF Decline

Nippon India Silver ETF declined 7.57% to Rs 219 per unit at 2 pm on Thursday. Meanwhile, Nippon India ETF Gold BeES fell nearly 5% to Rs 121.48 per unit.

Tata Silver ETF, Tata Gold ETF

Tata Silver ETF fell around 7.9% to Rs 22.16 per unit, whereas Tata Gold Exchange Traded Fund fell close to 4.53% to Rs 14.31 per unit.

ICICI Prudential Gold ETF, Silver ETF

ICICI Prudential Gold ETF was down by 5.43% to Rs 124.06 per unit, and ICICI Prudential Silver ETF slipped by 7.78% to Rs 228.19 per unit.

Why Are Gold, Silver ETFs Falling Today?

The sharp decline in gold and silver ETF mirrored broader weakness in the commodities market after the United States Federal Reserve outcome. The US Fed on Wednesday kept its benchmark interest rate unchanged at 3.5%-3.75%. The committee maintained a hawkish tone and indicated less urgency to cut rates amid economic uncertainty due to Iran-US war.

"The declines come amid a backdrop of rising inflation concerns in the U.S., which have been exacerbated by geopolitical tensions stemming from the ongoing conflict between the U.S. and Iran, leading to fears of oil supply disruptions that could further fuel inflation. Despite international gold prices seeing some resistance below the $5,000 mark, the hawkish stance of the U.S. Federal Reserve has kept the upside capped. Crude oil prices also dipped slightly, trading at $96.12 per barrel (approximately ₹8,970), as market participants weigh the implications of escalating tensions on energy supplies," explained Gaurav Garg, Research Analyst at Lemonn Markets Desk.

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