Gold, Silver ETFs Slump as Dollar Surges on Strong US Jobs Data
Gold, Silver ETFs Slump as Dollar Surges on Strong US Jobs Data
Gold and silver ETFs tumble up to 10% as a stronger dollar after upbeat US jobs data dampens rate-cut hopes, highlighting a split with physical bullion.
Gold and silver ETFs came under intense selling pressure on Friday, plunging by as much as 10% intraday, after a sharp surge in the US dollar followed stronger-than-expected US January jobs data. The dollar strength cooled expectations of early Federal Reserve rate cuts and weighed heavily on precious metals, even as international bullion prices showed a rebound. This divergence underscored how gold and silver can behave very differently in ETF form versus in the physical market during periods of volatility.
Silver ETFs bore the brunt of the sell-off. Kotak Silver ETF led the decline, tumbling nearly 10% intraday to a low of ₹225.11, with Edelweiss Silver ETF, SBI Silver ETF and Zerodha Silver ETF all slipping as much as 9% during the day. In contrast, gold-focused funds were relatively steadier, though they too fell: Tata Gold ETF dropped about 6%, while SBI Gold ETF and Nippon India Gold ETF declined roughly 4%.
By afternoon trade, several silver ETFs had slid further. Tata Silver ETF stood at ₹23.37, down 6.11%; Nippon India Silver ETF at ₹230.07, down 6.24%; Zerodha Silver ETF at ₹24.44, down 6.14%. Other notable losses included HDFC Silver ETF at ₹229.67 (−6.50%), ICICI Prudential Silver ETF at ₹240.30 (−6.09%), Groww Silver ETF at ₹23.55 (−6.25%), Aditya Birla Sun Life Silver ETF at ₹240.17 (−6.07%), SBI Silver ETF at ₹235.22 (−6.33%), UTI Silver ETF at ₹231.82 (−6.36%), Kotak Silver ETF at ₹233.10 (−6.55%), DSP Silver ETF at ₹231.41 (−6.36%), and Mirae Asset Silver ETF at ₹233.50 (−6.83%). The weakness appeared broad-based across the silver ETF segment.
The day’s dynamics highlighted an ongoing disconnect between ETF prices and physical bullion during volatile markets. While spot and international bullion prices showed resilience at times, ETF prices remained under pressure as the dollar strength and shifting expectations for US monetary policy dominated trading, emphasizing how investors should navigate rebalancing considerations in the ETF space during turmoil.
Investors will be watching whether this ETF weakness persists as currency moves and US macro signals continue to influence sentiment. The key takeaway is the contrasting paths of ETFs and physical bullion in a volatile environment, reminding market participants of the different risk profiles and triggers driving each market.
