Gold, Silver ETFs See Sharp Fall Of Up To 24 pc
According to analysts, Indian gold and silver ETF prices have been moving faster than the MCX and COMEX prices on the back of speculative buying
Chennai: Gold and silver Exchange Traded Funds crashed up to 24 per cent on Wednesday after the global tensions eased and cooled off gold and silver from their record high levels. The heightened speculative activity in gold and silver ETFs in the recent sessions led to a sharp fall in the asset class.
Silver prices in the Multi Commodity Exchange were down by around 3 per cent to Rs 3,07,950 per kg levels on Wednesday after global tensions eased following the US President Donald Trump’s statement that he would not impose tariffs on eight European nations scheduled to take effect on 1 February with the progress made in talks with NATO Secretary-General Mark Rutte on Greenland. Gold prices eased during early trade, but regained record high levels.
However, compared to the MCX and COMEX prices, the fall in gold and silver ETFs in India was much sharper. Tata Silver ETF crashed almost 24 per cent, Edelweiss Silver ETF and Mirae Asset plunged 22 per cent, and Nippon India Silver ETF shed 20 per cent. Nippon India Gold Bees ETF prices were down 11 per cent. Tata Gold ETF too was down 12.7 per cent.
According to analysts, Indian gold and silver ETF prices have been moving faster than the MCX and COMEX prices on the back of speculative buying. In the recent sessions, the ETFs were carrying high premiums on speculation that the Union Budget would increase the duties on gold and silver imports. In the past session, Indian silver was trading near $107 per ounce, almost $13 above the COMEX price of around $94.
The easing of geo-political tensions led to heavy selling of ETFs. However, ETF prices made some recovery after the market prices gained some lost ground. Silver was trading at $93.4 per ounce levels in the international market and gold at $4826 per ounce.