At 9:23 AM, DSP Silver ETF climbed 0.32 per cent, UTI Silver ETF gained 0.27 per cent, and Groww Silver ETF rose 0.16 per cent. Meanwhile, HDFC Silver ETF, Mirae Asset Silver ETF, Axis Silver ETF, and Tata Silver ETF were trading marginally higher.
Similarly, gold ETFs traded with a positive bias. Union Gold ETF rose 1.3 per cent, Groww Gold ETF gained 0.26 per cent, and Tata Gold ETF was up 0.13 per cent. Both Axis Gold ETF and HDFC Gold ETF remained flat with a positive bias.
In contrast to the ETF movement, gold and silver futures on the MCX traded lower. Gold April futures were down 0.87 per cent at ₹1,60,335 per 10 gm, while Silver April futures shed 1.3 per cent to trade at ₹2,71,044 per kg.
Analyst view:
Kranthi Bathini, director of equity strategy, WealthMills Securities, noted that gold and silver are currently in a consolidation phase.
“Gold and silver are consolidating after a strong year-to-date (YTD) run-up, despite ongoing global uncertainty. In the short term, it is advisable to avoid buying ETFs, but for the medium term, investors can consider entering,” said Bathini.
Precious metals have delivered robust returns so far this year, with MCX spot gold rallying 19 per cent and silver surging 15 per cent in the Y-T-D period. On the outlook, Bathini added, “Gold and silver are expected to perform well given the prevailing geopolitical uncertainty.”
That apart, the broader market sentiment was also impacted by a massive spike in energy prices. Oil prices surged about 20 per cent on Monday, hitting their highest levels since July 2022. The rally was driven by the expanding US-Israeli conflict with Iran, which led some major Middle Eastern producers to cut supplies. Concerns over prolonged shipping disruptions through the Strait of Hormuz further fueled the surge. Brent crude futures jumped as much as $18.35 (19.8 per cent) to $111.04 a barrel, before trading at $107.93, up 16.4 per cent.
Disclaimer: Views and recommendations are those of the brokerage/analyst and are not endorsements. Readers should exercise discretion.