Gold and Silver ETFs Plunge Amid Warsh's Hawkish Comments

Gold and silver exchange-traded funds (ETFs) plummeted by up to 4% on August 31, as weakness in precious-metal prices spilled over into domestic markets.

Hawkish comments from US Federal Reserve Chair Kevin Warsh strengthened expectations of an interest-rate hike, pushing bond yields higher and reducing the appeal of non-yielding assets such as gold and silver.

The decline came amid a combination of aggressive profit-taking, weak global cues, rising US bond yields, and escalating tensions between the US and Iran, which have pushed energy prices higher and raised concerns about a fresh inflation flare-up.

SBI Silver ETF fell 4.05% to Rs.226.55, while Nippon India Silver ETF dropped 4.06% to Rs.221.07.