Stories
Precious Metals Plunge: Gold, Silver ETFs Tumble on US Fed Rate-Hike Fears
- •Gold and silver ETFs experienced sharp selling pressure, with silver ETFs falling up to 3.6% and gold ETFs over 2%, driven by inflation concerns and expectations of further US Federal Reserve interest-rate hikes.
- •The decline in precious metals coincided with a broader risk-off movement in Indian equities, as the Sensex crashed 975 points and the Nifty fell 310 points.
- •SBI Silver ETF led the losses among major precious-metal ETFs, dropping 3.59%, while ICICI Prudential Gold ETF saw a 2.64% decrease.
- •International bullion markets mirrored the sell-off, with spot gold falling 2.1% and spot silver suffering an even steeper 3.4% decline.
- •The sell-off was fueled by rising crude oil prices after US President Donald Trump rejected an Iranian proposal, elevating energy-driven inflation concerns and increasing the likelihood of further Fed monetary tightening.
Key Questions Answered
Gold and silver ETFs fell under heavy selling pressure as precious metal prices slid internationally, driven by rising crude oil prices that heightened inflation concerns and boosted expectations of further interest-rate hikes by the US Federal Reserve.
Silver ETFs suffered the steepest losses, falling as much as 3.6 percent, with funds like SBI Silver ETF dropping 3.59 percent and Nippon India Silver ETF declining 3.57 percent. Meanwhile, gold ETFs dropped over 2 percent, with ICICI Prudential Gold ETF falling 2.64 percent and SBI Gold ETF declining 2.55 percent.
Crude oil prices climbed after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. Brent crude futures jumped 3.29 percent to $107.75 a barrel, escalating energy-driven inflation fears and tightening expectations for monetary policy.
