Silver Prices Plummet, ETFs and Hindustan Zinc Stocks Take Hit

Market Update: Precious Metals Prices Plummet

On March 19, the prices of silver exchange-traded funds (ETFs) declined significantly, with the Edelweiss Silver ETF and Axis Silver ETF trading 6.37% and 6.2% lower, respectively, at 12:45 pm. Other silver ETFs, including Kotak Silver ETF, HDFC Silver ETF, and Nippon India Silver ETF, also fell 6% each.

The decline in silver prices was attributed to a firm dollar and a hawkish Federal Reserve, which limited hopes for near-term interest rate cuts. As a result, shares of Hindustan Zinc, the country's largest silver producer, traded 4.5% lower at Rs 513.35 per share.

Gold prices also slipped 1.1% following the Fed meet, with gold ETFs like Aditya Birla Sun Life Mutual Fund, Tata Mutual Fund, Axis Mutual Fund, and DSP Mutual Fund falling 2.5%–3%. The spot gold price dropped 1.1% to $4,764.27 per ounce, its lowest since February 6. US gold futures for April delivery fell 2.6% to $4,770.

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Spot silver prices plummeted 4.3% to $72.14 per ounce, while spot platinum fell 2.1% to $1,981.48, and palladium lost 1% to $1,461.

The decline in precious metal prices follows a significant increase in gold prices earlier in the year, with spot gold hitting an all-time high of approximately $5,400 per ounce in late January 2026. The rally was initially driven by concerns over the Federal Reserve's independence and the possibility of interest rate cuts. However, the onset of the West Asia conflict has led to a shift in market sentiment, with inflation expected to remain elevated and recession concerns rising.