Gold And Silver ETFs Fall Today As Silver Funds Decline Up To 3% And Gold ETFs Slip
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Silver has been underperforming gold this week, while expectations around US interest rates, Treasury yields and the dollar remain key drivers for bullion prices.
Gold and silver exchange-traded funds came under pressure on Friday, tracking weakness in the underlying metals as markets awaited the US inflation data due later in the day. Gold ETFs mostly declined by less than 1%, while silver funds faced a sharper selloff, extending a weak week for bullion.
Nippon India Gold BeES, the most actively traded gold ETF by volume, fell 0.67% to Rs 125.36. Invesco India Gold was the biggest decliner among gold funds, down 1.31%, while SBI Gold slipped 0.76% and Axis Gold and Birla Sun Life Gold declined 0.72% each.
HDFC Gold fell 0.71% and ICICI Prudential Gold was down 0.69%. Kotak Gold and UTI Gold declined 0.67% and 0.66%, respectively, while Quantum Gold fell 0.61% and IDBI Gold slipped 0.26%.
Silver ETFs See Sharper Fall
Selling was heavier across silver ETFs, with ICICI Prudential Silver down 2.72% at Rs 227.14. The decline comes as silver has also remained under pressure in international markets, with the metal heading for a weekly loss of around 4%.
Gold has also struggled during the week, with spot prices heading towards a third consecutive weekly decline. At the time of the quoted market data, international gold was down 0.47% at $4,386.70 an ounce.
The pressure on precious metals has come as expectations of a US Federal Reserve rate hike have strengthened. US producer prices rose 0.4% in August, prompting traders to increase bets on a rate increase at the Fed's upcoming meeting.
Higher interest rates and Treasury yields tend to weigh on non-yielding assets such as gold and silver, while a stronger dollar can add further pressure to bullion prices. The US Consumer Price Index data due later on Friday could therefore provide the next major trigger for the metals.
A hotter-than-expected inflation reading could strengthen expectations of higher rates and keep pressure on gold and silver, while a softer print could ease some of the recent selling.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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