Warsh Comments Spark 4% Plunge in Gold and Silver ETFs

Gold and silver exchange-traded funds (ETFs) faced heavy selling pressure on August 31, plummeting as much as 4% due to hawkish comments from US Federal Reserve Chair Kevin Warsh.

The remarks strengthened expectations of a rate increase at the Fed's September meeting, with traders now pricing in over 50% probability. Higher interest rates typically weigh on non-yielding assets like gold and silver.

Gold ETFs suffered losses, with ICICI Prudential Gold ETF falling 3.59% to Rs 130.75, SBI Gold ETF declining 3.50% to Rs 130.30, and Nippon India ETF Gold BeES dropping 3.48% to Rs 126.30.

Silver ETFs suffered even steeper losses, with SBI Silver ETF falling 4.05% to Rs 226.55, Silver BeES declining 4.06% to Rs 221.07, Tata Silver ETF down 3.98%, and ICICI Prudential Silver ETF slipping 3.87%.