Silver Outperforms Gold in India as Global Bullion Prices Surge on Weaker US Rate Expectations
Precious metals exchange-traded funds (ETFs) saw a strong rally in India, with silver ETFs slightly outpacing their gold counterparts. The surge reflects robust gains in global bullion prices, driven by expectations that the Federal Reserve might adopt a less aggressive stance regarding interest rates. This movement provides a significant boost to investors holding commodity exposure through the Indian market.Global Bullion Prices Rally as US Rate Fears Ease
Global precious metal markets rallied strongly after softer-than-expected US labor data bolstered hopes of reduced interest rate aggression from the Federal Reserve. Spot gold rose 1 percent, reaching $4,165.29 an ounce. This gain follows a session where the metal touched its highest level since June 23.Bullion was on track for its first weekly gain in five weeks, rising approximately 1.8 percent for the week. This momentum was mirrored across other key metals. Silver also extended its rally significantly, with spot prices climbing 2.1 percent to $62.28 an ounce.
Indian Precious Metal ETF Performance Details
Gold ETFs experienced consistent gains on the domestic market. Nippon India ETF Gold BeES climbed 2.4 percent to Rs 120.51 at around 1:10 pm. ICICI Prudential Gold ETF also rose by 2.4 percent, reaching Rs 124.90. SBI Gold ETF advanced 2.3 percent to Rs 124.25, while Tata Gold Exchange Traded Fund climbed 2.3 percent to Rs 14.14.Silver ETFs saw sharp gains globally and domestically. Nippon India Silver BeES jumped 2.6 percent to Rs 221.95. SBI Silver ETF advanced 2.5 percent to Rs 227.28, and ICICI Prudential Silver ETF added 2.4 percent to Rs 231.28.
Domestic Gold Demand Softens Amid Price Rise
Despite the rising global commodity prices, physical gold demand exhibited some softening in India on Friday. Reuters reported that buyers were holding back as they witnessed the rebound in metal values. Domestic gold prices managed to climb up to as much as Rs 148,046 per 10 grams.This rise follows a period of volatility for the commodity. Prices had previously declined about 8.4 percent during June after hitting a three-month low of Rs 140,450 on Tuesday. Meanwhile, other metals showed strength in international markets, with Platinum gaining 2.4 percent and Palladium rising 0.9 percent.
Broader Market Sentiment Remains Constructive
The rise in precious metal ETFs occurred amid a generally positive sentiment across the broader Indian equity market. At 1:10 pm IST, the Sensex was trading up 432.10 points, or 0.56 percent, closing at 77,934.22. The Nifty also advanced 144.55 points, or 0.60 percent, reaching 24,320.25.Indications of reduced market nervousness were visible as the India VIX fell by 3.34 percent. This suggests easing expectations regarding overall market volatility.
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