Precious metals continue to see volatile price action. Gold and silver prices have retreated from their weekly record highs and seen sharp swings. MCX Futures for gold and silver are in the green with smart intra-day gains. However, the ETFs had a different story. They ended in the red, posting sharp 5% plus decline. Silver ETFs saw sharper losses compared to Gold ETFs.
MCX Gold rallied to Rs 1,63,640 per 10 grams, up 1.57%, while MCX Silver stood at Rs 2,74,637 per kilogram, up 3.51% from its previous close. In international markets, COMEX gold futures were quoted at $5,195.45 per troy ounce, up 1.40%, while COMEX silver futures stood at $86.68 per troy ounce, up 3.85%. The upward movement in bullion prices was not mirrored in ETFs, as precious metals markets saw steep declines yesterday owing to a strong dollar and price consolidation.
The Multi Commodity Exchange (MCX) was closed for the first half of the day yesterday on account of Holi; however, trading resumed in the evening session, which commences from 5 pm, till 11 pm.
Silver ETF
Tata Silver Exchange Traded Fund closed at Rs 25.86, down 7.18%, while Nippon India Silver ETF stood at Rs 255.57, down 6.95%. Zerodha Silver ETF moved to Rs 27.19, slumping 6.40%, and Kotak Silver ETF was at Rs 25.99, declining 6.78%. Groww Silver ETF was quoted at Rs 26.84 with a decline of 4.82%, whereas ICICI Prudential Silver ETF stooped to Rs 266.48, plummeting 6.92%.
HDFC Silver ETF was priced at Rs 253.90, down 8.06%, and Aditya Birla Sun Life Silver ETF declined to Rs 265.64, down 6.98%. SBI Silver ETF stooped to Rs 262.20 with a 6.81% loss, while UTI Silver ETF stood at Rs 257.00, down 7.48%. Axis Silver ETF closed at Rs 263.99, down 7.46%, and DSP Silver ETF closed at Rs 257.00 with a 7.36% fall. Mirae Asset Silver ETF ended at Rs 263.00, down 5.62%, while 360 ONE Silver ETF closed at Rs 262.85, falling 6.84%.
Motilal Oswal Silver ETF traded at Rs 263.48 with a 6.57% decrease, Edelweiss Silver ETF ended at Rs 267.00, down 6.65%, and Bandhan Silver ETF was at Rs 267.86, falling 6.89%.
Gold ETF
Tata Gold Exchange Traded Fund ended trade at Rs 15.67, down 3.21%, while Nippon India ETF Gold BeES closed at Rs 133.96 with a fall of 3.15%. Zerodha Gold ETF moved to Rs 25.48, declining 3.34%, and ICICI Prudential Gold ETF reached Rs 138.40, down 3.59%. HDFC Gold ETF was priced at Rs 138.45 with a 2.98% decrease, while Groww Gold ETF traded at Rs 15.83, falling 3.48%.
SBI Gold Exchange Traded Scheme stood at Rs 138.20, down 3.20%, and Kotak Gold Exchange Traded Fund fell to Rs 134.65 with a 3.48% fall. Mirae Asset Gold ETF was at Rs 157.36, down 2.76%, and Angel One Gold ETF traded at Rs 15.16 with a 2.82% decline. Axis Mutual Fund – Axis Gold ETF stood at Rs 134.05, falling 4.78%, while UTI Mutual Fund – UTI Gold ETF was quoted at Rs 136.40, falling 2.95%. DSP Gold ETF was priced at Rs 157.06 with a 3.48% fall, and Birla Sun Life Gold ETF fell to Rs 142.30, down 3.17%. Motilal Oswal Gold ETF traded at Rs 160.55 with a 2.61% fall, Quantum Gold Fund – Exchange Traded Fund stood at Rs 134.07, declining 3.41%, and 360 ONE Gold ETF was at Rs 157.90, down 3.13%.
Edelweiss Gold ETF moved to Rs 161.60 with a 3.32% decrease, Bandhan Gold ETF traded at Rs 162.79, falling 2.95%, and Choice Gold ETF stood at Rs 160.95, down 2.83%. Baroda BNP Paribas Gold ETF was priced at Rs 157.05 with a 3.18% fall, Union Gold ETF reached Rs 156.95, down 5.02%, and LIC MF Gold ETF traded at Rs 14,546.35, falling 3.92%. The Wealth Company Gold ETF stood at Rs 161.76 with a 3.97% fall, while Invesco India Gold ETF was at Rs 13,930, down 3.92%.
What the mismatch between ETFs and bullion prices indicate?
The mismatch between bullion and ETFs shows that markets are still recovering from yesterday’s sharp declines. While both Gold and Silver futures on MCX and COMEX were up on the day, the same was not echoed in domestic ETFs, indicating imbalanced demand across segments.
Global and local prices are not moving in the same direction, as Indian stock markets were closed on Tuesday for Holi. With the strengthened dollar and profit-booking by investors, bidding for gold and silver has softened a bit across exchanges as well as fund platforms.