Silver ETFs sink up to 15%, gold ETFs remain relatively steady
Silver ETFs witnessed aggressive one-day selling, with losses ranging from over 10% to nearly 15% during morning trade. The fall was much steeper than what was seen in gold ETFs.
Silver exchange traded funds (ETFs) saw a sharp sell-off on February 5, with some funds falling by double digits in early trade as silver prices slipped again after a short-lived recovery. The sudden drop came after precious metals had rebounded for two sessions following a steep correction earlier this week.
HEAVY SELLING HITS SILVER ETFS
Silver ETFs witnessed aggressive one-day selling, with losses ranging from over 10% to nearly 15% during morning trade. The fall was much steeper than what was seen in gold ETFs, highlighting how volatile silver can be during market swings.
At the time of writing, MCX silver was trading at around Rs 2,46,397, down 8.35% or Rs 22,453. In comparison, gold prices were relatively stable. MCX gold was quoted near Rs 1,52,000, lower by just 0.68% or Rs 1,046. The sharp difference in price movement explains why silver-focused funds faced heavier pressure.
WHY ARE SILVER PRICES UNDER PRESSURE?
According to the Augmont Bullion Daily Report, gold and silver gave up their recent gains as fresh selling and high volatility returned to the precious metals market. Investor sentiment was also shaken after China’s gold ETFs recorded record daily outflows, with nearly $1 billion pulled out of major bullion-backed funds following the recent correction.
Market experts say that silver tends to react more sharply than gold during corrections. Because silver is widely used in industrial applications as well as investment products, price swings often become exaggerated during uncertain periods.
TECHNICAL OUTLOOK FOR MCX SILVER
Ponmudi R, CEO of Enrich Money, said MCX silver futures are currently trading in the Rs 2,50,000–Rs 2,60,000 range after a sharp fall from record highs near Rs 4,20,000. He said that while the long-term trend remains positive, prices have slipped below key moving averages, pointing to short-term weakness.
Strong buying interest is seen in the Rs 2,35,000–Rs 2,50,000 zone, which acts as an important support area. If prices manage to hold above this band and recover steadily, silver could move towards Rs 3,00,000–Rs 3,25,000 in the coming sessions. However, a clear break below support may trigger further downside pressure.
GOLD REMAINS RELATIVELY STEADY
Gold ETFs also moved lower in line with MCX gold, but the decline was limited compared to silver. According to Ponmudi R, MCX gold is trading between Rs 1,49,000 and Rs 1,55,000 after correcting from record highs of around Rs 1,80,000–Rs 1,81,000.
He added that the broader bullish structure in gold remains intact, with strong support in the Rs 1,45,000–Rs 1,48,000 area. A sustained move above Rs 1,55,000–Rs 1,60,000 could help gold regain upward momentum in the medium term.
WHAT IT MEANS FOR INVESTORS
For investors, the latest crash in silver ETFs is a reminder of how quickly sentiment can change in the commodities market. Analysts suggest that while short-term volatility may continue, long-term investors often use such dips to gradually accumulate positions, provided key support levels hold.
Still, experts advise caution. With global factors and investor flows driving sharp price moves, traders may see continued swings in silver ETFs in the near term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Silver exchange traded funds (ETFs) saw a sharp sell-off on February 5, with some funds falling by double digits in early trade as silver prices slipped again after a short-lived recovery. The sudden drop came after precious metals had rebounded for two sessions following a steep correction earlier this week.
HEAVY SELLING HITS SILVER ETFS
Silver ETFs witnessed aggressive one-day selling, with losses ranging from over 10% to nearly 15% during morning trade. The fall was much steeper than what was seen in gold ETFs, highlighting how volatile silver can be during market swings.
At the time of writing, MCX silver was trading at around Rs 2,46,397, down 8.35% or Rs 22,453. In comparison, gold prices were relatively stable. MCX gold was quoted near Rs 1,52,000, lower by just 0.68% or Rs 1,046. The sharp difference in price movement explains why silver-focused funds faced heavier pressure.
WHY ARE SILVER PRICES UNDER PRESSURE?
According to the Augmont Bullion Daily Report, gold and silver gave up their recent gains as fresh selling and high volatility returned to the precious metals market. Investor sentiment was also shaken after China’s gold ETFs recorded record daily outflows, with nearly $1 billion pulled out of major bullion-backed funds following the recent correction.
Market experts say that silver tends to react more sharply than gold during corrections. Because silver is widely used in industrial applications as well as investment products, price swings often become exaggerated during uncertain periods.
TECHNICAL OUTLOOK FOR MCX SILVER
Ponmudi R, CEO of Enrich Money, said MCX silver futures are currently trading in the Rs 2,50,000–Rs 2,60,000 range after a sharp fall from record highs near Rs 4,20,000. He said that while the long-term trend remains positive, prices have slipped below key moving averages, pointing to short-term weakness.
Strong buying interest is seen in the Rs 2,35,000–Rs 2,50,000 zone, which acts as an important support area. If prices manage to hold above this band and recover steadily, silver could move towards Rs 3,00,000–Rs 3,25,000 in the coming sessions. However, a clear break below support may trigger further downside pressure.
GOLD REMAINS RELATIVELY STEADY
Gold ETFs also moved lower in line with MCX gold, but the decline was limited compared to silver. According to Ponmudi R, MCX gold is trading between Rs 1,49,000 and Rs 1,55,000 after correcting from record highs of around Rs 1,80,000–Rs 1,81,000.
He added that the broader bullish structure in gold remains intact, with strong support in the Rs 1,45,000–Rs 1,48,000 area. A sustained move above Rs 1,55,000–Rs 1,60,000 could help gold regain upward momentum in the medium term.
WHAT IT MEANS FOR INVESTORS
For investors, the latest crash in silver ETFs is a reminder of how quickly sentiment can change in the commodities market. Analysts suggest that while short-term volatility may continue, long-term investors often use such dips to gradually accumulate positions, provided key support levels hold.
Still, experts advise caution. With global factors and investor flows driving sharp price moves, traders may see continued swings in silver ETFs in the near term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)