Fed's Hawkish Stance Sends Gold and Silver ETFs Plummeting
Gold and silver exchange-traded funds (ETFs) declined on Monday, August 31, after Federal Reserve Chairman Kevin Warsh emphasized curbing inflation as the central bank's top priority in a speech at Jackson Hole.
The hawkish stance of the Fed boosted market expectations for a rate hike next month, causing safe-haven assets like gold and silver to fall. In the spot market, gold prices dropped 1.22% to ₹1,54,940 per 10 grams, while silver futures fell 0.5% to ₹2,40,011 per kg.
Nippon India Silver ETF was among the worst performers, declining up to 4.7% intraday before recovering slightly. Other silver ETFs, including Aditya Birla Sun Life Silver ETF and HDFC Silver ETF, fell between 3-4%. Gold ETFs also traded lower, with Aditya Birla Sun Life Gold ETF slipping 8% intraday.