Gold and Silver ETFs Plummet Over 4% Amid Rising Inflation Concerns

Gold and silver exchange-traded funds (ETFs) took a hit on Monday, September 28, plummeting over 4% in value. The decline mirrors the sharp drop in global precious metal prices.

The largest fallers among major silver ETFs were SBI Silver ETF, down 3.99%, followed by Nippon India Silver ETF at 3.57%, and Tata Silver Exchange Traded Fund with a decline of 3.51%. ICICI Prudential Silver ETF also slipped to 3.44%.

Gold ETFs fared slightly better but remained firmly in negative territory, with ICICI Prudential Gold ETF down by 2.92%, followed by SBI Gold ETF at 2.85%. Nippon India ETF Gold BeES lost 2.80%, and Tata Gold Exchange Traded Fund dropped to 2.67%.

The downturn is attributed to a strong dollar, higher US bond yields, and a hawkish Federal Reserve, all of which are putting upward pressure on inflation. Brent crude prices rose due to the ongoing Iran-US standoff, further fueling concerns about rising costs across the economy.