Silver and Gold ETFs See Gains Amid Trump Tariff Ruling and Softening Dollar

Market Update: Bullion ETFs Surge on Weakening Dollar

Key Points:

• Gold and silver exchange-traded funds (ETFs) rallied sharply around noon on Monday, tracking a rise in underlying bullion prices.
• The rally in bullion-linked ETFs was driven by a weakening dollar after the US Supreme Court struck down a broad set of tariffs imposed by President Donald Trump.

ETF Performance:

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• Silver ETFs led the gains, with:
  • Nippon India Silver ETF rising 6.06 percent to Rs 250.96
  • Tata Silver Exchange Traded Fund climbing 6.17 percent to Rs 25.46
  • SBI Silver ETF up 6.09 percent at Rs 256.78
  • ICICI Prudential Silver ETF advancing 6.05 percent to Rs 261.76
• Gold ETFs posted comparatively modest gains of around 2 percent, with:
  • Nippon India ETF Gold BeES rising 2.07 percent to Rs 130.18
  • Tata Gold Exchange Traded Fund gaining 2.01 percent to Rs 15.24
  • SBI Gold ETF adding 2.05 percent to Rs 134.22
  • ICICI Prudential Gold ETF up 2.03 percent at Rs 134.84

Underlying Metals Market:

• On MCX, gold was hovering near Rs 1.60 lakh per 10 grams of 24-carat purity, up 1.71 percent from the previous close.
• On Comex, the metal was trading 1.85 percent higher at $5,175 per ounce.
• Silver rose even more sharply, gaining 4.7 percent on MCX to trade just above Rs 2.64 lakh per kg, while Comex silver advanced 5.16 percent to $86.59 per ounce.

Market Insights:

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, the rally in bullion prices is driven by the dollar's decline following the US Supreme Court's decision.
• Justin Khoo, Senior Market Analyst (APAC) at VT Markets, notes that markets are increasingly pricing in rate cuts as headline inflation cools, but underlying inflation remains uneven, suggesting a gradual and measured approach by the US Federal Reserve.