Gold and silver exchange-traded funds (ETFs) came under pressure on Friday, with silver ETFs declining more sharply than their gold counterparts. The fall mirrors weakness in the underlying precious metals as investors reassess expectations around the US Federal Reserve’s interest-rate path.
Among gold ETFs, Invesco India Gold was the biggest decliner, falling 1.01%, while SBI Gold, Axis Gold, HDFC Gold and ICICI Prudential Gold also traded lower. Nippon India Gold BeES, one of the most actively traded gold ETFs, declined 0.75% to ₹125.25.
Silver ETFs saw a steeper correction. ICICI Prudential Silver ETF fell as much as 3.09% to ₹226.47, while another quote showed the fund down 3%.
The decline in precious metals has been driven by a combination of higher US interest-rate expectations and rising Treasury yields. Stronger-than-expected US producer-price data has increased bets that the Federal Reserve could maintain a tighter monetary policy stance.
Higher interest rates typically weigh on gold and silver because these assets do not generate interest income, making them relatively less attractive when bond yields rise.