Gold, Silver ETFs Extend Losses on Tuesday, But Declines Ease From Monday’s Rout

Mumbai, Sept 1: Gold and silver exchange-traded funds extended their retreat on the domestic bourses on Tuesday morning, with most precious-metals ETFs trading lower for a second straight session, though the pace of decline eased sharply from Monday’s sweeping sell-off. Trading was still underway at the time of writing, with a couple of smaller silver and gold-linked funds bucking the trend to edge into positive territory even as the broader category stayed under pressure. Nippon India’s SILVERBEES and GOLDBEES, the two largest precious-metals ETFs by traded value on the exchanges, both remained in the red through the morning session. 

Silver ETFs 

Among silver ETFs, Nippon India’s SILVERBEES, the largest fund in the category by traded value, was down 0.58 per cent. Tata Silver ETF (TATSILV) slipped 0.4 per cent, ICICI Prudential’s SILVERIETF declined 0.6 per cent, and HDFC Silver ETF (HDFCSILVER) fell 0.53 per cent. Zerodha’s SILVERCASE was down 0.72 per cent and the physical-price-linked SILVER contract slipped 0.58 per cent. SBI Silver ETF (SBISILVER) was down 0.48 per cent, UTI Silver ETF (SILVERBETA) declined 0.49 per cent, and Kotak Silver ETF (SILVER1) slipped 0.57 per cent. DSP Silver ETF (SILVERADD) and Axis Silver ETF (SILVERAXIS) were both down close to half a per cent, while Mirae Asset’s SILVERAG declined 0.52 per cent. Not every silver-linked fund was in the red, however: SILVER360 was a rare gainer, up 0.21 per cent even as most peers slipped. 

Gold ETFs 

Gold ETFs saw a similar, milder pullback. Nippon India’s GOLDBEES, the largest gold ETF by traded value, was down 0.62 per cent, while ICICI Prudential’s GOLDIETF declined 0.46 per cent and SBI’s SETFGOLD slipped 0.68 per cent. HDFC Gold ETF (HDFCGOLD) fell 0.71 per cent, Tata Gold ETF (TATAGOLD) was down a modest 0.47 per cent, and Axis Gold ETF (GOLDAXIS) declined 0.31 per cent. Zerodha’s GOLDCASE slipped 0.5 per cent, Mirae Asset’s GOLDETF was among the steeper decliners at 0.79 per cent, and DSP’s GOLDADD ETF was down 0.53 per cent. Aditya Birla Sun Life’s BSLGOLDETF declined 0.71 per cent, while Zerodha’s GROWWGOLD posted one of the shallower falls, down just 0.27 per cent. As with silver, one small gold-linked fund, GOLD360, bucked the trend, edging up 0.07 per cent. 

Losses Moderate From Monday’s Rout 

Tuesday’s declines mark a second straight session in the red for both metals, but the scale of the fall is far smaller than Monday’s rout, when nearly every listed gold and silver ETF dropped more than 2 per cent. Silver ETFs such as SILVERBEES and HDFC Silver ETF remain up sharply over the past year even after two down sessions, while gold ETFs including GOLDBEES are still comfortably higher over the same period, underlining that the underlying rally remains largely intact despite the recent pullback. 

Dealers said Tuesday’s continued softness reflects some lingering profit-booking after the sharp rally earlier in the year, compounded by a steady dollar and elevated US bond yields as traders weigh the outlook for Federal Reserve policy. With both metals still up sharply over the past 30 days, the pullback looks more like a pause than the start of a deeper correction, though dealers said sustained declines over further sessions would be needed to confirm a genuine trend reversal. 

Outlook 

Investors will watch whether Tuesday’s milder losses mark the start of a stabilisation after Monday’s sharp fall, or merely a pause before further declines. With the session still underway, traders said the next few hours of trade, along with cues from international spot gold and silver prices, will be key to determining the day’s final direction. Retail investors who missed out on the earlier rally may see the two-day pullback as a chance to accumulate at somewhat lower levels, dealers said, though they cautioned against reading too much into a single session’s price action. 

Investors who are looking to diversify beyond physical gold and silver can also explore the list of Gold ETFs and Silver ETFs in India, which track gold and silver prices without the need to store physical metal: https://hdfcsky.com/etf/gold-etf and https://hdfcsky.com/etf/silver-etf 

Source

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