Gold ETF and Silver ETF Rally: Gold ETFs Outshine as Precious Metals Hit Record Highs

Market Performance: Gold ETFs Take the Lead

The precious metals space woke up to fireworks on January 29. Gold ETF and Silver ETF prices jumped sharply, moving in tandem with a powerful rally in spot and futures markets. But as the dust settled, gold ETFs clearly stole the spotlight.

Gold futures on the Multi-Commodity Exchange surged 9 percent, touching an all-time high of Rs 1,80,779 per 10 grams for the February contract. April and June contracts followed the same path, each rising around 9 percent to fresh lifetime highs.

Silver futures also moved higher, but at a slower pace. The March silver contract climbed nearly 6 percent to a new record of Rs 4,07,456 per kilogram. Contracts expiring in May and July rose by about 6 percent as well.

This strong move in futures reflected quickly in ETFs, with Gold ETF returns outpacing Silver ETF gains for the session.

Main News: Why Gold ETF and Silver ETF Prices Jumped?

Several global cues came together to drive this rally.

One key trigger was growing concern around rising US debt and uncertainty over the global trade structure. There is a visible shift away from a single, US-centric system toward regional trade blocs, which has increased demand for traditional safe-haven assets like gold.

Geopolitical tensions also added fuel. US President Donald Trump urged Iran to return to nuclear negotiations, while warning of stronger action if talks failed. Iran’s response, threatening retaliation against the US, Israel, and their allies, further unsettled global markets.

At the same time, the US Federal Reserve left interest rates unchanged, a move that generally supports non-yielding assets such as gold and silver.

Another important driver was rising institutional interest in physical gold. Some crypto-focused firms are planning to shift 10–15 percent of their investment portfolios into physical gold, adding fresh demand to the metal.

Together, these developments created a perfect setup for a sharp move in both Gold ETF and Silver ETF prices.

Company Details: Gold ETF and Silver ETF Performance Snapshot

The impact was clearly visible across domestic ETFs.

Gold ETF gains

• Kotak Gold ETF jumped over 13 percent, hitting a record high of Rs 155
• Baroda BNP Paribas Gold ETF rose nearly 10 percent
• Axis Gold ETF, 360 ONE Gold ETF, Union Gold ETF, and LIC MF Gold ETF gained around 9 percent each

Silver ETF gains

• Motilal Oswal Silver ETF climbed about 8 percent, reaching a lifetime high of Rs 371.91
• Nippon India Silver ETF and several others also advanced close to 8 percent

While both categories delivered strong returns, gold ETFs clearly outperformed silver ETFs during this rally.

Gold vs Silver: How the Gap Has Changed?

Over the past 12 months, silver prices have delivered an exceptional run, rising over 200 percent, compared with gold’s roughly 80 percent increase in the same period. This sharp divergence has led to a major shift in the gold–silver ratio, which has fallen from pandemic-era highs of 127 to around 50 at the start of 2026.

This compression highlights how aggressively silver has already moved, while gold has remained relatively steadier during recent sessions—something that reflected directly in ETF performance on January 29.

Summary: What This Means for Gold ETF and Silver ETF Watchers?

The latest rally shows how quickly sentiment can swing toward precious metals when global uncertainty rises. On this occasion, gold ETFs emerged as the stronger performer, supported by stable demand and defensive positioning.

Silver ETFs still participated in the upside, but their gains lagged gold despite silver futures also hitting record highs.

With gold futures above Rs 1.80 lakh per 10 grams and silver above Rs 4.07 lakh per kilogram, the precious metals space is firmly in focus. For now, price action suggests that gold ETFs are acting as the preferred route for exposure, while silver ETFs remain more volatile after a long and powerful run.

As market conditions evolve, movements in Gold ETF and Silver ETF prices will continue to reflect global risk sentiment, monetary policy cues, and geopolitical developments—factors that remain firmly in play.

Source: Moneycontrol