Silver ETFs Rise 2.5% as Gold ETFs Gain Amid Weaker Dollar and Higher Bullion Prices

Precious Metal Prices Surge Amid Crude Oil Decline and Dollar Index Weakness

Silver exchange traded funds (ETFs) surged over 2.5 percent on Wednesday, while gold ETFs also traded firmly higher, tracking a sharp rise in precious metal prices amid weakness in crude oil and the dollar index. The rally in bullion-linked ETFs came as domestic precious metal prices surged sharply on the Multi Commodity Exchange (MCX).

Among the top gainers, Nippon India Silver ETF climbed 2.62 percent to Rs 234.89, in the afternoon trade. ICICI Prudential Silver ETF advanced 2.62 percent to Rs 244.99, SBI Silver ETF gained 2.57 percent and Tata Silver ETF rose 2.58 percent. Gold ETFs also saw healthy gains, though relatively lower than silver funds. ICICI Prudential Gold ETF rose 1.74 percent to Rs 128.75. SBI Gold ETF gained 1.66 percent, Nippon India ETF Gold BeES climbed 1.63 percent and Tata Gold ETF added 1.61 percent.

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The gains in precious metals came amid a sharp decline in crude oil prices and weakness in the dollar index following reports that the United States and Iran were moving closer to a possible agreement to end the ongoing conflict in the Middle East. Softer oil prices and a weaker dollar often improve sentiment for precious metals, particularly gold, which is viewed as an alternative store of value and a hedge against macro uncertainty.

Silver has recently seen heightened investor interest due to its dual role as both a precious metal and an industrial commodity used in sectors such as solar energy, electronics and electric vehicles. The shares of Multi Commodity Exchange (MCX) also gained, ending up 2.33 percent at Rs 2,970 on NSE today.

Precious metal prices surged sharply on the MCX, with gold futures for June delivery opening at Rs 1,52,000 per 10 grams, up Rs 2,247 or 1.5 percent from the previous close of Rs 1,49,753. By late afternoon, gold futures were trading at Rs 1,52,590, up nearly 1.9 percent. Silver prices outperformed gold during the session, with silver futures for July delivery opening 2.04 percent higher at Rs 2,49,316 per kg and extending gains through the day. In late afternoon trade, silver futures were quoting at Rs 2,54,338 per kg, up 4.1 percent from the previous close.