Last Updated:
Analysts say the sharp fall in gold and silver ETFs partly reflects global price movements that occurred when Indian markets were closed for a holiday.
Gold & Silver ETFs Decline.
Gold and silver exchange-traded funds (ETFs) declined sharply on Wednesday, March 3. Prices fell up to 9 per cent as investors booked profits after the recent rally in precious metals. The fall also reflected weakness in international bullion prices and a stronger US dollar.
The correction came despite escalating geopolitical tensions due to the ongoing US-Israeli war against Iran.
Silver ETFs See Sharpest Fall
Silver ETFs recorded the steepest decline during the session.
Nippon India Silver ETF (SILVERBEES) fell nearly 8 per cent to around Rs 252. HDFC Silver ETF slipped more than 9 per cent to about Rs 250. ICICI Prudential Silver ETF and SBI Silver ETF also declined over 8 per cent each.
Other funds such as Tata Silver ETF, Groww Silver ETF and Zerodha Silver ETF also traded lower.
Gold ETFs Also Decline
Gold ETFs also came under pressure, though the fall was relatively smaller compared to silver.
Nippon India ETF Gold BeES declined about 3.7 per cent to around Rs 133. ICICI Prudential Gold ETF and HDFC Gold ETF also dropped over 4 per cent. SBI Gold ETF and Tata Gold ETF recorded similar losses.
Holiday Effect Behind Sharp Move
Analysts said the sharp fall partly reflects global price movements that occurred when Indian markets were closed for a holiday.
Hareesh V, head of commodity research at Geojit Financial Services, said, “The fall corresponds to international markets. Yesterday, our markets were closed due to a holiday, so the sell-off was not witnessed locally. Today, the movement is aligning with international prices.”
He added, “Before yesterday, international silver prices were around $96-$97, but yesterday they fell below $78, representing a 10-15 per cent decline. Since the Indian market was closed, this reflected in today’s trading. Additionally, a sharp recovery in the US dollar contributed to the decline in gold and silver.”
MCX Gold, Silver Futures Rise
Despite the fall in ETFs, gold and silver futures traded higher on the Multi Commodity Exchange (MCX).
Gold April 2 futures rose 1.53 per cent to Rs 1,63,581 per 10 grams. Silver May 5 futures gained 3.08 per cent to Rs 2,73,500 per kg, according to MCX data.
Gold Outlook Remains Positive
Market experts say gold still has a positive outlook due to geopolitical uncertainty.
Ponmudi R, CEO of Enrich Money, said, “For MCX gold, prices are currently consolidating with a mildly positive bias as safe-haven demand remains supported by global geopolitical uncertainty.”
He added that strong buying interest is visible in the Rs 1,58,000-Rs 1,62,000 zone. If prices break above Rs 1,70,000, the rally may extend toward Rs 1,75,000-Rs 1,80,000.
Silver May Remain Volatile
For silver, analysts expect choppy trading because of speculative activity.
Ponmudi R said the key support lies in the Rs 2,50,000–Rs 2,70,000 range. If prices sustain above this zone, silver could move toward Rs 3,00,000–Rs 3,20,000.
Oil Prices Edge Higher
Meanwhile, crude oil prices moved higher amid Middle East tensions.
Brent crude rose 1.49 per cent to $82.61 per barrel, while WTI crude gained 1.09 per cent to $75.37 per barrel.
Analysts say geopolitical tensions and currency movements may keep precious metals volatile in the near term. However, gold is expected to remain supported by safe-haven demand.
Click here to add News18 as your preferred news source on Google.
Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
March 04, 2026, 11:51 IST
Read More