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Gold and silver ETFs fell on profit booking as bullion prices slipped. SEBI has proposed revising ETF price bands to curb rising volatility
Gold and silver ETFs
Gold and silver exchange-traded funds (ETFs) declined on February 16 as investors booked profits following the previous session’s rally in precious metals. Meanwhile, the Securities and Exchange Board of India (SEBI) has proposed reviewing price bands for ETFs amid heightened volatility.
As of 12:45 pm, Edelweiss Mutual Fund’s Silver ETF was down about 3 per cent. Silver ETFs from Bandhan Bank, Kotak Mahindra Bank, Aditya Birla Sun Life AMC, ICICI Prudential Mutual Fund, 360 ONE WAM, SBI Mutual Fund, Mirae Asset Mutual Fund and Nippon India Mutual Fund (SilverBees) fell over 2 per cent each.
Among gold ETFs, Choice International’s Gold ETF slipped around 2 per cent. Gold ETFs from Angel One, Motilal Oswal Financial Services and Kotak were also trading in the red with marginal losses, although some peers managed modest gains.
Gold, silver prices today
Silver futures on the Multi-Commodity Exchange of India (MCX) were down nearly 2 per cent at Rs 2,40,034 per kg at 12:50 pm, after plunging about 4 per cent earlier in the day to Rs 2,35,208 per kg. Gold futures on the exchange were lower by around 0.5 per cent.
Why are prices falling?
Global gold and silver prices edged lower amid thin trading volumes, with US markets shut for Presidents’ Day and Chinese markets closed for the Lunar New Year holiday. The decline also reflected profit booking after Friday’s sharp gains.
Reuters quoted Tim Waterer, chief market analyst at KCM Trade, as saying that gold had given back part of its post-CPI gains due to thinner liquidity and a lack of fresh catalysts.
SEBI proposes volatility curbs
Last week, SEBI proposed a comprehensive review of base price determination and price band norms for ETFs, citing concerns over volatility alignment and operational gaps. The regulator suggested rationalising the existing uniform ±20 per cent price band for most ETFs (±5 per cent for Overnight ETFs investing in TREPs).
What lies ahead?
Hareesh V, Head of Commodity Research at Geojit Investments, said gold has turned choppy after sharp swings in early 2026, driven by shifting Fed expectations, dollar strength and speculative flows. However, he noted that the broader structure remains constructive, supported by central bank buying, geopolitical uncertainty and expectations of a softer dollar.
In the near term, trading may remain two-sided as markets assess US policy signals and global risk events. Still, analysts believe dips could attract buying interest amid resilient safe-haven demand and moderating real yields.
Sandip Raichura, CEO of Retail Broking and Distribution & Director at PL Capital, said easing trade uncertainties have reduced some risk, but persistent inflation and geopolitical tensions are likely to sustain central bank demand. He added that corrections in gold could present buying opportunities.
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February 16, 2026, 15:06 IST
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