Gold And Silver ETFs Under Pressure In Early Trade As Strong Dollar Weighs On Bullion Prices

Gold and silver exchange-traded funds (ETFs) witnessed sharp selling in early trade on Friday as precious metal prices stayed on course for a third consecutive weekly decline.

The weakness in bullion followed gains in the US dollar and a tougher-than-expected stance from the US Federal Reserve, which reduced investor appetite for non-yielding assets. Silver ETFs saw steeper losses than their gold counterparts during the session.

Silver ETFs Drop More Than 5% Intraday

Among silver-linked funds, Nippon Silver ETF declined 5.41% in early trade. On the other hand, ICICI Prudential Silver ETF and HDFC Silver ETF fell 5.50% and 5.49%, respectively, in intraday deals. SBI Silver ETF and Tata Silver ETF lost 5.40% and 5.36% in early trade. Here’s how these ETFs stood at 12:32 pm on the National Stock Exchange (NSE):

Gold ETFs Also Trade Lower

Gold ETFs mirrored the weakness seen in bullion markets, though losses were relatively lower than those of silver funds. In early trade, Nippon Gold ETF slipped 2.64%, while ICICI Prudential Gold ETF declined 2.77%, SBI Gold ETF, HDFC Gold ETF and Kotak Gold ETF fell 2.72%, 2.59% and 2.88%, respectively. At 12:36 pm, here’s how these ETFs were performing on the NSE:

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Key Levels For Gold And Silver

Experts said MCX Gold has fallen more than 4% over the last two trading sessions, reflecting a negative near-term trend. They feel the commodity is nearing an important support band between ₹1,44,700 and ₹1,42,700. Resistance is seen in the ₹1,49,300-₹1,52,000 range.

On silver, experts opined that MCX Silver has continued to weaken for a fourth straight week. The contract opened nearly 2% lower on Friday and remained under selling pressure through the session. They placed support between ₹2,23,100 and ₹2,19,600, while resistance is seen in the ₹2,42,200-₹2,46,800 range.

Source:

Moneycontrol