Gold and Silver ETFs Plummet as US Bond Yields Rise

Indian gold and silver ETFs declined on Thursday due to higher US bond yields and a stronger US dollar. The 26 gold ETFs listed on exchanges were all in negative territory, with some of them falling by as much as 1.19 percent. GoldBeES, the highest traded gold ETF by value, fell by 0.57 percent to Rs. 124.02.

The 19 silver ETFs also declined, with most of them down by around 1.2 percent. SilverBeES was the highest traded silver ETF by value, falling by 1.16 percent to Rs. 217.70. The decline in gold and silver prices can be attributed to the rise in US Treasury bond yields, which reached 5.11 percent.

Bank ETFs also declined on Thursday, with all 36 of them trading lower. Some bank ETFs fell by as much as 2.04 percent, while PSU bank ETFs held up better, falling by only 0.87 percent. The decline in bank ETFs can be attributed to the overall market decline and higher crude oil prices.

On the other hand, IT ETFs remained resilient, trading near flat levels. Four out of nine IT ETFs were even in positive territory, despite the overall market decline.