Gold-Silver ETF

There was a rise in gold and silver exchange traded funds. The reason for this is the sharp recovery in precious metals, whereas in the last few days a lot of fluctuations were seen in them. The futures price of gold with April expiry increased by about 2% in Monday morning trade to Rs 1,58,500 for 10 grams. An increase of about 2% was also recorded in contracts with June expiry.

Meanwhile, the futures prices of silver with March expiry increased by about 6% to Rs 2,64,885 per kg. At the same time, a rise of about 4% was seen in contracts with May expiry.

Rise in gold-silver ETF

UTI Silver ETF jumped more than 11% to Rs 252.08 per unit, while Nippon India Silver ETF rose more than 10% to Rs 247 per unit. Other silver ETFs including HDFC Silver ETF, Tata Silver ETF also registered a gain of more than 10%. Zerodha Silver ETF, SBI Silver ETF, Aditya Birla Sun Life Silver ETF, DSP Silver ETF, Kotak Silver ETF, Grove Silver ETF and ICICI Prudential Silver ETF gained about 8% each.

At the same time, Mirae Asset Silver ETF, 360 ONE Silver ETF, Axis Silver ETF, Motilal Oswal Silver ETF and other ETFs were up about 7% till 9:30 am. Talking about gold ETFs, Union Gold ETF and Angel One Gold ETF saw a rise of more than 3%. At the same time, 360 ONE Gold ETF, LIC MF Gold ETF, Kotak Gold ETF, Motilal Oswal Gold ETF, Nippon India Gold ETF and SBI Gold ETF had a gain of about 3%. Zerodha Gold ETF, HDFC Gold ETF, Axis Mutual Fund Gold ETF, UTI MF Gold ETF and other gold ETFs registered a rise of more than 2%.

Why are there fluctuations in precious metals?

The sharp fluctuations in the gold and silver market in recent times have wiped out a large part of the record earnings made in January. This decline started when CME Group increased the margin requirements on both metals. Due to this, investors who traded by borrowing more had to close their positions and strong selling was seen in the market.

Additionally, the selling intensified when the market received signals that US President Donald Trump has nominated Kevin Worsh as the next Federal Reserve Chairman. He is considered to be a person adopting a strict policy and being in favor of the dollar. This increased expectations of tighter interest rates and strengthened the US dollar, which is usually harmful for gold and silver.