Gold and Silver ETFs Drop Amid US Rate Hike Expectations
Gold and silver ETFs fell sharply by up to 3.6% as market anticipates a rise in US interest rates.
Mumbai, September 28 (Udaipur Kiran) : Gold and silver exchange-traded funds (ETFs) experienced significant declines on Monday, with drops of up to 3.6%, as investors anticipated a rise in interest rates in the United States. The decline was particularly pronounced in silver, which saw a steeper fall compared to gold.
The SBI Silver ETF plummeted by 3.6% to ₹216.23, while Nippon India Silver ETF fell by 3.57% to ₹210.99. The Tata Silver ETF decreased by 3.51% to ₹21.43, and the ICICI Prudential Silver ETF dropped 3.44% to ₹220.49.
In contrast, the ICICI Prudential Gold ETF saw a decrease of 2.64%, settling at ₹125.63. The SBI Gold ETF fell by 2.55% to ₹125.16, the Nippon India Gold ETF declined by 2.45% to ₹121.38, and the Tata Gold ETF dropped 2.26% to ₹14.29.
As of 1:30 PM, gold was trading at ₹1,47,121 per 10 grams on the Multi Commodity Exchange (MCX) for the October 5, 2026 contract, reflecting a decline of 2.49%. Silver for the December 4, 2026 contract fell 3.34% to ₹2,26,853 per kilogram.
Internationally, both gold and silver also faced substantial declines. As per the latest updates, gold on COMEX was down 3.13% to $4,185 per ounce, while silver decreased by 5.19% to $61.42 per ounce.
The drop in precious metals has been attributed to U.S. President Donald Trump’s rejection of a peace proposal concerning Iran, which has contributed to a rise in crude oil prices, with Brent crude reaching $107 per barrel. This situation has raised concerns about prolonged inflation and increased expectations for an interest rate hike in the upcoming Federal Reserve meeting, putting further pressure on precious metals.
Deependra Singh Chundawat is a Senior Sub-Editor at Udaipur Kiran, specializing in a wide range of technology topics including mobile phones, applications, gaming, PCs, and wearables. Along with covering the latest tech news, he also creates engaging web stories. Passionate about emerging technologies, he stays up to date with the newest trends and enjoys reading and writing about the latest mobile launches and digital innovations.