Silver ETFs Surge as Bullish Domestic Rally Overshadows Global Metal Weakness
Exchange-traded funds tracking precious metals saw distinct gains on Friday, bucking the trend of weaker global bullion prices. Silver ETFs recorded significant surges, while gold ETFs also climbed despite spot metal facing headwinds and preparing for a weekly decline.Precious Metals ETF Performance Snapshot
Silver ETFs led the charge, with several key funds gaining over 3 percent. Nippon India Silver ETF (SilverBeES) rose 3.05 percent to Rs 228.14 at around 11:20 am. ICICI Prudential Silver ETF also posted a strong performance, rising 3.05 percent to Rs 238.08. SBI Silver ETF advanced 3.02 percent to Rs 233.62, and the Tata Silver ETF climbed 3.11 percent at Rs 23.18.Gold-linked funds also performed positively in domestic markets. Nippon India ETF Gold BeES gained 1.56 percent reaching Rs 121.14. ICICI Prudential Gold ETF rose 1.50 percent to Rs 125.54. SBI Gold ETF added 1.51 percent at Rs 124.86, while the Tata Gold ETF was up 1.43 percent trading at Rs 14.22.
Global Price Slump vs Domestic Gains
The rally in these domestic ETFs occurred amidst a subdued performance of global precious metals. Spot gold stood down 0.5 percent at $4,193.58 per ounce on Friday. Globally, the metal was trending towards a weekly decline estimated at about 3.1 percent. This downturn follows an earlier dip to a multi-six month low before some losses were recovered following calls by US President Donald Trump regarding planned military strikes on Iran and signals of potential peace talks.Government Tariff Reduction Boosts Sentiment
Market sentiment received tangible support from the government’s reduction in tariff values for gold and silver, effective from June 12. The base import price for gold was lowered by $80 to $1,343 per 10 grams. Correspondingly, the base import price for silver was cut by $276 to $2,092 per kilogram.The tariff value serves as a reference rate for calculating customs duties on imported metals and does not reflect their actual market value. This reduction helps lower the assessable value used for duty calculation, offering potential cost savings to importers of bullion.
Broader Risk-On Mood Drives ETF Resilience
The positive movement in gold and silver ETFs was also underpinned by a broader risk-on mood observed across domestic equities. At approximately 11:19 am, the Nifty gained nearly 200 points while the Sensex climbed 770 points. Furthermore, the India VIX witnessed a sharp drop exceeding 4.5 percent, contributing to a generally robust domestic market atmosphere.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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