Market Performance
The rally in precious metals hit a sudden pause on January 30. Gold and silver prices slipped sharply after touching record highs just a day earlier. That swing rippled straight into gold and silver ETF prices, pulling them lower across the board.
Gold futures on MCX with April expiry fell nearly 5%, trading around ₹1,75,100 per 10 grams. Just a session earlier, the same contract had touched a lifetime high of ₹1,93,096 per 10 grams. February and June gold contracts also slipped, declining close to 6% each in early trade.
Silver followed a similar path. March futures dropped around 6% to ₹3,75,900 per kg, while May and July contracts were down by roughly 6% as well.
The fall marked one of the sharpest single-day corrections in recent months for precious metals.
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This sudden pullback in prices quickly translated into steep losses for gold and silver ETF investors.
Gold ETFs, which had seen strong gains over the last year, saw heavy selling pressure:
- Nippon India ETF Gold BeES fell around 10% to ₹132, despite delivering 104% returns over the past year
- ICICI Prudential Gold ETF dropped nearly 10%
- Axis Gold ETF declined close to 9%
- UTI Gold ETF, HDFC Gold ETF, DSP Gold ETF, Edelweiss Gold ETF, Quantum Gold ETF also slipped sharply during the session
Silver ETFs saw even deeper cuts:
- Mirae Asset Silver ETF fell about 13%
- Motilal Oswal Silver ETF dropped 12.5% to ₹330.01
- HDFC Silver ETF and Nippon India Silver ETF plunged over 14% each
- Aditya Birla Sun Life, Groww, ICICI Prudential, Axis, UTI, Tata, Kotak Silver ETFs all moved lower in line with silver prices
The scale of the fall reflected how closely ETF prices track underlying commodity movements.
Why Gold and Silver Fell?
The decline in precious metals was driven by global cues rather than domestic factors.
Spot gold prices slid about 5% globally, a day after touching a record high of $5,594.82. The fall came amid rising speculation around leadership changes at the US Federal Reserve.
US President Donald Trump indicated that he will soon reveal his nominee for the next US Federal Reserve Chair, with Jerome Powell set to step down in May. The statement unsettled markets, as investors began factoring in the risk of a more hawkish approach from the central bank going forward.
At the same time, the US dollar saw a rebound, adding pressure on gold and silver prices. After a steep and fast rally, precious metals were also seen reacting to overextended positions built up over recent weeks.
Together, these factors led to sharp profit-taking across global markets, spilling over into Indian futures and ETFs.
Company Details
Here is a snapshot of how key gold and silver ETF names moved during the session:
Gold ETFs
- Nippon India ETF Gold BeES: ~10% down
- ICICI Prudential Gold ETF: ~10% down
- Axis Gold ETF: ~9% down
- HDFC, DSP, Quantum, UTI, Edelweiss Gold ETFs: Sharp declines
Silver ETFs
- Mirae Asset Silver ETF: ~13% down
- Motilal Oswal Silver ETF: ~12.5% down
- HDFC Silver ETF: >14% down
- Nippon India Silver ETF: >14% down
- Other silver ETFs: Broad-based selling
The declines were broadly aligned with the fall in futures prices, showing no ETF-specific triggers.
Summary of the Article
The January 30 session marked a sharp reversal for precious metals after record highs. A nearly 5–6% fall in gold and silver prices led to deep cuts in gold and silver ETF values, with losses ranging between 9% and 14% across major funds.
Global uncertainty around US Federal Reserve leadership, a stronger dollar, and profit-taking after a strong rally combined to trigger the move. While the long-term story of precious metals remains unchanged in market discussions, this session underlined how quickly price momentum can reverse.
For now, the focus stays on global cues, policy developments, and how markets digest the sharp correction following an explosive run-up in gold and silver prices.
Source: Moneycontrol
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