Gold ETFs Flat as Silver ETFs Slide Further

Mumbai, July 11: Gold and silver ETFs traded on divergent paths on Friday’s NSE trading session. While gold-linked funds ended the day mostly unchanged, silver ETFs fell sharply on Friday afternoon and for the second straight day overall, according to NSE data.

Spot silver had swung sharply higher at the open on Friday before paring gains towards mid-day. Gold prices, meanwhile, traded relatively flat throughout the day and most gold ETFs tracked that sideways action.

The move on Friday comes after silver ETFs have traded considerably more volatile than gold ETFs over the course of the week, even as both metals are involved in the same safe-haven buying amid tensions between Iran and the US.

Gold ETFs

Gold ETFs listed on the NSE traded relatively unchanged through Friday’s session, with most funds declining by less than 0.2% on the day.

Among pure gold ETFs:

• Nippon India Gold ETF (GOLDBEES): Rs 118.38, -0.03% from Rs 118.42, on turnover of Rs 175.32 crore
• SBI Gold ETF (SETFGOLD): Rs 122.00, -0.09% from Rs 122.11
• Tata Gold ETF (TATAGOLD): Rs 13.90, -0.07% from Rs 13.91, on volume of over 3 crore units
• HDFC Gold ETF (HDFCGOLD): Rs 122.20, -0.05% from Rs 122.26, NAV Rs 121.94

Also Checkout: List of Gold ETFs in India

Silver ETFs

Silver ETFs saw broad selling across the board, with nearly all funds linked to silver down between 1.6% and 2% on the day.

Among pure silver ETFs:

• Nippon India Silver ETF (SILVERBEES): Rs 208.97, -1.87% from Rs 212.95 on turnover of Rs 677.21 crore
• HDFC Silver ETF (HDFCSILVER): Rs 208.99, -1.95% from Rs 213.14
• Tata Silver ETF (TATSILV): Rs 21.25, -1.80% from Rs 21.64, on turnover of Rs 148.87 crore
• SBI Silver ETF (SBISILVER): Rs 214.60, -1.69% from Rs 218.29

The moves in silver ETFs were more broad- based across ETF providers compared with gold ETFs, suggesting the declines were more driven by price action in silver itself rather than individual ETFs tracking behaviour.

Thursday’s Action

Gold prices saw more sideways price action on Thursday after swinging as much as 1% higher at the open. Silver prices briefly spiked above Rs 217 before seeing profit-taking dip towards Rs 212 by the mid-day trading session.

Safe-Haven Buying Continues

Buying in safe-haven assets including gold and silver has persisted through much of July as tensions between the US and Iran have escalated after the US killing of Iranian General Qassam Soleimani on 3 July. Concerns around potential military conflict between Iran and the US have supported silver and gold prices as major holdings of investors globally seek refuge from stock markets roiled by trade-war uncertainties.

Silver’s higher volatility has often been attributed to its dual characteristics as a precious metal for investors and as an industrial commodity used in major industries like electronics, solar panel manufacturing and electric vehicles. Gold, meanwhile, is largely viewed as solely a safe haven asset.

Safe-haven Demand Lifts Gold and Silver ETF Year-on-Year Performance

Even with Friday’s pullback in prices, both gold and silver ETFs have jumped by far more than year-ago levels. Silver ETFs have continued to outperform gold on a year-to-date basis, surging more than 100% since this time last year. Gold ETFs are still up over 40% on a year-on-year basis.

This year’s performance is also indicative of strong safe haven demand for precious metals in recent months. Silver ETF (SILVERBEES) trades significantly lower than its 52-week high of Rs 360.00.

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