Gol‌‌d ETFs Dro‌‌p 3%, Silver ET‌Fs Decline 6% Am‌id Fed, Dollar and West Asia Con‌‌c‌ern‌s

Mumbai, Ju‌‌ne 8: Gol‌‌d and silver exchange-traded funds (ET‌Fs) came under severe selling pressure on Monday as a sharp correction in global precious metal prices weighed heavily on domestic fund valuation‌‌s. Silver-‎linked ETFs emerged as the biggest losers with declines exceeding 6%, while most gold ETFs declined between 2% and 3%.  

The decline came as a result of a widespread sell-off in the bullion market due to fears that the US Federal Reserve would maintain elevated interest rates following robust economic data from the US, coupled with tensions in West Asia and higher crude oil prices. 

The weakness in precious metals was reflected across international spot prices, Multi Commodity Exchange (MCX) futures contracts and domestic ETF products, making Monday one of the sharpest sessions for bullion-linked funds in recent weeks. 

Gold ETFs Drop Up to 3% As Global Bullion Prices Extend Losses 

Gold-focused ETFs traded lower throughout the session as international gold prices remained under pressure after a steep decline late last week. 

Among the major schemes, Axis Gold ETF declined 3.06 %, making it one of the worst-performing gold funds of the day. ICICI Prudential Gold ETF fell 2.68%, while SBI Gold ETF lost 2.70%. Nippon India ETF Gold BeES slipped 2.64%, HDFC Gold ETF declined 2.61%, and UTI Gold ETF fell 2.54%. 

The losses reflected the decline in underlying gold prices as global markets reacted to changing expectations around US monetary policy and inflation. 

Silver ETFs Slide More Than 6% as Selling Pressure Intensifies 

Silver-linked ETFs witnessed significantly sharper declines than their gold counterparts, reflecting the steeper correction seen in silver prices. 

HDFC Silver ETF emerged as the biggest loser, falling 6.42%. Kotak Silver ETF declined 6.39%, while SBI Silver ETF fell 6.35 %. Nippon India Silver ETF and ICICI Prudential Silver ETF each dropped 6.26%, with Zerodha Silver ETF also declining 6.26%. 

The sharp fall highlighted the greater volatility in silver compared with gold during periods of uncertainty in global commodity markets. 

Spot Gold at $4,319.09 as Strong US Data Fuels Rate Concerns 

International bullion markets remained under pressure after stronger-than-expected economic data from the United States reinforced expectations that interest rates may remain higher for longer. 

Spot gold traded at approximately $4,319.09 per ounce, down 0.2 %, after falling nearly 3 % during the previous trading session. The decline followed a strong US jobs report that strengthened concerns about a possible interest rate increase or prolonged restrictive monetary policy stance by the US Federal Reserve. 

Higher interest rates typically reduce the attractiveness of non-yielding assets such as gold, while supporting the US dollar. The stronger dollar further weighed on precious metals by making them more expensive for holders of other currencies. 

MCX Gold at ₹153,970 and Silver at ₹243,575 Reflect Global Weakness 

Domestic commodity markets mirrored the weakness seen in international bullion prices. 

On the Multi Commodity Exchange, Gold August futures fell 1.04 % to ₹153,970 per 10 grams, while Silver July futures declined 2 % to ₹243,575 per kilogram. 

The weakness followed a significant correction during the previous trading session, when MCX gold reportedly declined by nearly 3,500 points. Prices opened lower again on Monday, indicating continued pressure across precious metal contracts. 

The decline in commodity futures directly impacted exchange-traded funds, as ETF valuations closely track movements in underlying bullion prices. 

Silver Hits Lower Circuit and Gold-Silver Ratio Crosses 63:1 

Silver continued to underperform gold after witnessing an aggressive correction in recent sessions. 

The metal had reportedly hit a nearly 6 % lower circuit during the previous trading session before extending losses at Monday’s open. Market data also showed the Gold-Silver ratio moved above 63:1, indicating that silver was significantly underperforming gold. 

The widening ratio reflected the extent of silver’s decline relative to gold and highlighted the stronger selling pressure in silver-linked investment products. The trend also underscored the differing demand dynamics affecting the two precious metals during the current phase of market volatility. 

Crude Oil at $94.16 and West Asia Tensions Add Inflation Concerns 

Apart from interest rate expectations, geopolitical developments also played a role in shaping commodity market sentiment. 

Crude oil prices surged nearly 4 % to $94.16 per barrel amid renewed tensions in West Asia and concerns over potential supply disruptions. Reports of fading expectations surrounding a possible US-Iran peace agreement further contributed to uncertainty in energy markets. 

Higher oil prices raised concerns about inflationary pressures globally, creating additional headwinds for precious metals. The combination of rising energy costs, geopolitical uncertainty and tighter monetary policy expectations added to volatility across commodity markets. 

Gold Trades Below Key Averages as Precious Metals Face Pressure 

Market activity indicated that gold remained below several key short-term and medium-term moving averages, signalling continued weakness in the near term. However, prices continued to hold above longer-term support levels despite the recent correction. 

Silver, meanwhile, faced stronger downside pressure following its sharp decline and continued underperformance relative to gold. The weakness across both metals contributed to broad-based declines in precious metal ETFs throughout the trading session. 

The selloff highlighted how developments in global economic data, interest rate expectations, currency movements and geopolitical events can influence bullion prices and ETF performance simultaneously. 

Precious Metal ETFs Reflect Broad-Based Commodity Market Correction 

The decline across gold and silver ETFs reflected a wider correction in precious metals rather than isolated fund-specific factors. As international bullion prices weakened, domestic ETF products tracked the fall in underlying asset values. 

The combination of stronger US economic data, concerns surrounding future Federal Reserve policy decisions, a firmer US dollar, rising crude oil prices and renewed geopolitical tensions created a challenging environment for precious metals on Monday. Silver-linked products experienced the sharpest impact, while gold ETFs also recorded widespread losses across fund categories. 

Gold and silver ETFs declined sharply on 8 June 2026 as global bullion prices weakened amid concerns over US interest rates, a stronger dollar, rising crude oil prices and renewed tensions in West Asia. The selloff was reflected across international bullion markets, MCX futures and domestic ETF products, with silver funds recording steeper declines than gold-focused schemes. 

Source 

• https://www.nseindia.com/market-data/exchange-traded-funds-etf