Silver, Gold ETF Sell-Off Intensifies as Precious Metals Stay Under Heavy Pressure

The pressure on silver and gold ETFs deepened further on Monday, as the ongoing correction in precious metal prices showed no signs of easing. For the third session in a row, exchange-traded funds linked to gold and silver remained under sharp stress, reflecting the steep fall unfolding across domestic and international commodity markets.

What started as a price correction has now turned into a broad-based slide, pulling ETFs sharply lower as traders reacted to fast-moving developments in the metals space.

Market Performance: Sharp Cuts Across Gold and Silver ETFs

Trading on the National Stock Exchange remained volatile throughout the session, with metal-backed ETFs facing heavy selling.

• Gold ETFs slipped 6% to 11% during intraday trade
• Silver ETFs witnessed a much steeper fall of around 20%

This marked the third consecutive day of decline, indicating sustained weakness rather than isolated selling.

The movement in ETFs closely followed the decline in underlying metal prices, reinforcing how sensitive these instruments remain during periods of sharp market moves.

Main News: MCX Futures Extend Losses

The weakness in silver and gold ETFs mirrored the sharp drop seen in futures prices on the Multi Commodity Exchange.

• MCX Gold March 5 futures were down 5%, trading at ₹1,37,390 per 10 grams
• MCX Silver March contracts declined 6% to ₹2,49,713 per kg

The sell-off was not restricted to domestic markets. Precious metals continued to weaken globally, adding to the pressure on ETF prices back home.

Global Markets Add to the Downward Momentum

International prices also remained under pressure through the session.

• Spot gold declined by 6%
• Spot silver dropped 11.8%

When compared with record highs:

• Gold prices are lower by 13.5%
• Silver prices have corrected by 32%

These deep cuts at the global level directly fed into the pricing of silver and gold ETFs, worsening intraday losses.

Company Details: Volatility Builds After Historic Moves

The current phase of selling follows an exceptionally volatile end to last week.

• Gold logged its steepest single-day fall in more than 10 years
• Silver saw its largest-ever intraday loss

The momentum carried into Monday as markets continued reacting to reports around possible changes in leadership at the US Federal Reserve, which triggered a sharp reassessment across commodities.

As metal prices adjusted rapidly, ETFs tracking them reflected the same intensity of movement.

Summary: ETFs Track One of the Sharpest Metal Corrections in Years

The ongoing fall in silver and gold ETFs highlights how quickly sentiment has shifted in precious metals.

• Third straight session of losses
• Double-digit intraday declines in ETFs
• Sharp falls in MCX gold and silver futures
• Significant correction from global record highs

As gold and silver remain under pressure across markets, silver and gold ETFs continue to echo the volatility, moving in line with every turn in metal prices.

Source: Business Standard