Gold, Silver ETFs Tumble Amid Fed's Hawkish Stance
Gold and silver exchange-traded funds (ETFs) fell significantly in value following Federal Reserve Bank Chairman Kevin Warsh's speech at Jackson Hole. In his speech, Warsh emphasized that curbing inflation is the central bank's top priority, which boosted market expectations for a rate hike next month.
This hawkish stance led to a decline in safe-haven assets, with gold prices falling 1.22% to ₹1,54,940 per 10 grams and silver futures dropping 0.5% to ₹2,40,011 per kg.
The Nippon India Silver ETF was the biggest laggard among listed silver ETFs, down 3.25% at last check after crashing 4.7% intraday. Aditya Birla Sun Life Silver ETF followed closely behind, declining 4.16% intraday, while HDFC Silver ETF fell 4.3%.
Gold ETFs also traded lower, with Aditya Birla Sun Life Gold ETF slipping 8% intraday and Quantum Gold ETF declining 5%. Nippon India ETF lost 4% intraday, while SBI Gold ETF and Tata Gold Exchange Traded Fund fell in the range of 2-4% at last check.
Warsh warned that policymakers must be confident inflation is slowing meaningfully, otherwise they have 'work to do'. He stated, 'Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job.'