Gold and Silver ETFs Plunge Over 4% Amid Rising Crude Prices

Gold and silver exchange-traded funds (ETFs) plummeted over 4% on Monday, September 28, due to heavy selling pressure caused by rising crude oil prices and inflation concerns. This decline mirrored a sharp drop in global bullion prices.

Spot gold fell 2.1% to $4,198.10 an ounce, while US gold futures also declined 2.1% to $4,231. Spot silver witnessed a sharper fall of 3.4% to $62.08 an ounce.

Akshat Garg, Head- Research & Product at Choice Wealth, stated that the decline in gold and silver ETFs is due to investors booking profits after a 'stunning run', not because the story has changed. He emphasized that a stronger dollar, higher US bond yields, and a hawkish Fed are contributing factors, while stubborn crude prices on the US-Iran standoff keep inflation worries simmering.

Garg advised investors to stay disciplined and ride out days like this with a systematic investment plan (SIP) in gold and silver. He noted that despite the decline, silver is still up over 100% and gold over 53% in just a year, making it normal for there to be a breather after such a rally.