Gold, Silver ETFs Plummet Up to 4% on Hawkish Fed Comments

Gold and silver exchange-traded funds (ETFs) took a hit on August 31, falling up to 4% as investors weighed in on hawkish comments from US Federal Reserve Chair Kevin Warsh. The remarks strengthened expectations of an interest-rate hike at the Fed's September meeting, with traders now pricing in a more than 50% probability.

Silver ETFs suffered sharper losses, led by SBI Silver ETF and Silver BeES, both falling around 4%. Tata Silver ETF dropped 3.98%, while ICICI Prudential Silver ETF slid 3.87%. Gold ETFs also declined, with ICICI Prudential Gold ETF falling 3.59% to Rs 130.75.

The decline in precious-metal prices was fueled by Warsh's comments and the resulting rise in US interest-rate expectations. Spot gold fell 0.7% to $4,422.75 an ounce, while silver declined 0.4% to $66.12 an ounce.