Gold and Silver ETFs Experience Gains Amid Decline in Brent Crude and Weakening Rupee

Gold and Silver ETFs Surge Amid Easing Crude Oil Prices and Weakening Rupee

Market Update

On Friday, gold and silver exchange-traded funds (ETFs) experienced significant gains, with some rising by up to 2.5%. The surge in ETFs was driven by a decrease in crude oil prices and a weakening Indian rupee. The Brent crude price moderated to USD 107 per barrel, down from USD 119.13 in the previous session.

ETF Performance

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

• Tata Silver ETF rose 2.3%
• ICICI Prudential Silver ETF gained up to 2%
• Nippon India Silver ETF advanced more than 2%
• ICICI Prudential Gold ETF climbed up to 1%
• Nippon India ETF Gold added 0.31%

Market Analysis

The decline in crude oil prices tends to ease inflation concerns and stabilize global markets, prompting investors to increase allocation to gold and silver as safe assets. A weaker rupee makes gold and silver costlier in the domestic market, supporting prices of related ETFs and boosting investor interest in these instruments as a hedge.

Key Economic Indicators

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

• Brent crude: USD 107 per barrel
• Indian rupee: fell 19 paise to a record intra-day low of 93.08 against the US dollar
• Sensex: jumped 976.77 points to 75,184.01 in early trade
• Nifty: surged 301.7 points to 23,303.85