Gold, silver ETF prices came under pressure on February 16 as profit booking in precious metals dragged exchange traded funds into the red. After a strong previous session, investors pressed the pause button.
By mid-day trade, both Gold, silver ETF counters were reacting to softer futures prices and thinner global participation. At the same time, the Securities and Exchange Board of India proposed changes aimed at addressing volatility in ETFs.
Here’s a detailed breakdown of what moved the market today.
Market Performance: Gold, Silver ETF Under Pressure
The tone turned cautious in the commodity-linked ETF space.
As of 12:45 pm:
- Edelweiss Mutual Fund Silver ETF fell around 3%
- Silver ETFs from:
- Bandhan Bank
- Kotak Mahindra Bank
- Aditya Birla Sun Life Mutual Fund
- ICICI Prudential Mutual Fund
- 360 ONE Asset
- SBI Mutual Fund
- Mirae Asset Mutual Fund
- Nippon India Mutual Fund (Silverbees)
- declined more than 2% each
On the gold side:
- Choice International Gold ETF slipped around 2%
- Gold ETFs from:
- were trading with marginal losses
A few gold ETFs, however, managed to stay in the green. But overall, sentiment leaned negative across the Gold, silver ETF segment.
Gold and Silver Prices Today
The pressure was visible in futures markets first.
On the Multi Commodity Exchange of India :
- Silver futures were down around 2% at Rs 2,40,034 per kg (12:50 pm)
- Earlier in the session, silver had dropped nearly 4% to Rs 2,35,208 per kg
- Gold futures declined around 0.5%
This sharp intraday swing explains why Gold, silver ETF counters reacted quickly. ETFs mirror underlying prices. When futures correct, ETF prices adjust in real time.
Why Gold, Silver ETF Prices Fell Today?
The fall wasn’t triggered by one big event. It was more about positioning and global participation.
Two key factors were visible:
1. Profit Booking After Friday’s Surge
Precious metals had rallied in the previous session. After a sharp rise, traders often lock in gains. That’s what played out today.
The Gold, silver ETF segment reflected this natural cooling off.
2. Thin Global Trading Volumes
Global participation was limited:
- US markets were closed for Presidents' Day
- China markets were shut for the Lunar New Year
With two major markets inactive, liquidity remained thin. In such conditions, even moderate selling can push prices lower. That filtered directly into gold and silver futures — and then into Gold, silver ETF prices.
SEBI Proposes Review of Price Bands for Gold, Silver ETF
Alongside price action, regulatory development added another layer of attention.
The Securities and Exchange Board of India proposed a comprehensive review of:
- Base price determination framework
- Price bands applicable to ETFs
The move comes after recent volatility in the ETF space.
Currently:
- Most ETFs operate under a uniform ±20% price band
- Overnight ETFs investing in TREPs carry a ±5% band
SEBI has proposed rationalising the existing structure. The intent is to better align volatility management and address operational gaps in the current system.
It’s important to note that this is a proposal stage review. But it clearly signals regulatory focus on volatility in Gold, silver ETF products.
Volatility Trend in Gold, Silver ETF Segment
Since early 2026, precious metals have seen sharp swings. That volatility has translated into ETF movements.
What’s happening structurally:
- Sharp intraday swings in silver prices
- Moderate pullbacks in gold
- Fast reactions in ETF net asset values (NAVs)
- Short-term profit booking activity
Silver, in particular, showed a wider move today — falling nearly 4% at one point before trimming losses.
That explains why silver ETFs corrected more sharply than gold ETFs.
How Futures Movement Impacts Gold, Silver ETF?
Gold, silver ETF products track underlying asset prices. Most physically-backed ETFs mirror spot or futures-linked pricing movements.
So when:
- Silver futures drop from Rs 2,40,000 levels to Rs 2,35,000 intraday
- Gold futures ease by 0.5%
ETF prices reflect those changes almost instantly.
This is why ETF investors saw 2%–3% corrections in a single session.
Broader Market Sentiment Around Gold, Silver ETF
There was no panic. But there was caution.
The correction looks more like:
- A reaction to prior gains
- Light global participation
- Short-term repositioning
Notably:
- Losses were contained within 0.5% to 3% range
- No abnormal dislocation between futures and ETF pricing reported
- Both gold and silver remained above earlier session lows
That suggests controlled volatility rather than disorderly selling.
Key Numbers at a Glance
Here’s a quick snapshot of today’s Gold, silver ETF and metal price action:
- Silver futures: Rs 2,40,034 per kg (down ~2%)
- Intraday silver low: Rs 2,35,208 per kg (down ~4%)
- Gold futures: down ~0.5%
- Major silver ETFs: down 2–3%
- Choice Gold ETF: down ~2%
- Uniform ETF price band: ±20%
- Overnight ETF band: ±5%
What This Means for Gold, Silver ETF Investors?
Today’s move highlights one simple truth.
Gold, silver ETF investments mirror real-time commodity moves. Even a routine correction in futures markets can translate into visible ETF declines.
The session reflected:
- Profit booking
- Low global liquidity
- Regulatory focus on ETF volatility
There was no structural breakdown in pricing. The correction came after a prior rally.
Summary: Short-Term Dip, Regulatory Focus in Spotlight
Gold, silver ETF prices slipped up to 3% on February 16 as precious metals corrected after earlier gains. Silver futures dropped to Rs 2,40,034 per kg after touching Rs 2,35,208 during the day. Gold futures eased 0.5%.
Silver ETFs saw sharper declines compared to gold ETFs, reflecting bigger intraday movement in silver prices.
At the same time, SEBI proposed reviewing ETF price band structures and base price determination mechanisms to better manage volatility.
In simple terms:
- Metals corrected
- ETFs followed
- Regulator stepped in with review proposals
Gold, silver ETF volatility remains linked closely to futures movement and global participation levels.
For now, the market tone is cautious but orderly.
Source: Moneycontrol
Easy & quick
Leave A Comment?