Precious Metal ETFs Plummet as Fed Rate Hike Fears Rise

Indian precious metal exchange-traded funds (ETFs) took a hit on Monday as investors grew wary of further interest-rate hikes by the US Federal Reserve. The rising crude oil prices fueled inflation concerns, sending gold and silver prices plummeting.

Silver ETFs bore the brunt of the decline, with some losing up to 3.6 percent. Gold ETFs also traded firmly in the red, dropping more than 2 percent. Among major precious-metal ETFs, SBI Silver ETF was the biggest loser, falling 3.59 percent to Rs 216.23.

The losses mirrored a sharp correction in international bullion markets, with spot gold and US gold futures both declining by 2.1 percent. Spot silver suffered an even steeper fall, losing 3.4 percent.