Silver ETFs Post 5.5% Gain, Hindustan Zinc Shares Rise 3.5% Amid 4% Surge in Precious Metal

Silver ETFs Surge Amid Weakening Dollar and Lower Oil Prices

On March 25, Silver Exchange Traded Funds (ETFs) rose by 5.5%, driven by a surge in precious metal futures by 6%, as the US dollar weakened. The drop in oil prices eased concerns about elevated inflation and higher global interest rates. This comes amid reports of a US plan to end the Middle East war.

Spot silver prices rose by 3.6% to $73.78 per ounce. Key silver ETFs in India, including Nippon India Silver ETF, Groww Silver ETF, and Zerodha Silver ETF, were trading higher by 5%, 5.5%, and 5%, respectively.

Hindustan Zinc, the largest silver producer in the country, saw its shares trading 3.5% higher at Rs 514.25.

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

Gold prices also rose, with spot gold increasing by 2.5% to $4,587.09 per ounce as of 0218 GMT. U.S. gold futures for April delivery gained 4.2% to $4,586.10.

Oil prices fell below $100 a barrel, easing concerns about elevated inflation. The prospect of a possible ceasefire in the Middle East region is expected to ease supply disruptions and lower crude prices.

Interest rate futures suggest that there is no prospect for a US Federal Reserve rate cut this year, according to CME Group's FedWatch tool. JPMorgan noted that the current gold price levels, trading 17% below pre-conflict levels, are a tactical dip to buy, and the bullish case for gold strengthens the longer the conflict persists.