Silver exchange-traded funds tumbled up to 19% on Monday amid a sharp drop in silver prices, extending a recent sell-off. MCX silver futures for March 5 delivery nosedived ₹22,938 per kg (8.63%) to ₹2,65,652 per kg, hitting a low of ₹2,42,714 after peaking at a record ₹4,20,048. The slide accelerated after US President Donald Trump named Kevin Warsh as the next Fed Chairman, viewed as more hawkish on interest rates, alongside a stronger dollar (index at 97.24), rising Treasury yields, and firm US inflation data.
ETFs bore the brunt: Tata Silver ETF fell 19.15% to ₹22.25, SBI Silver ETF dropped 14.98% to ₹220.41, Aditya Birla Sun Life Silver ETF slid 14.6% to ₹224.80, Groww Silver ETF tanked 16.17% to ₹216, and others like Zerodha, Nippon India, ICICI Prudential, Kotak, HDFC, and Motilal Oswal saw declines from 14-17%. Analysts attribute the correction to rapid macro shifts erasing India’s bullion premium post-union budget, though the long-term trend stays bullish above key supports at ₹2,35,000-2,40,000. India’s unchanged import duties further pressured local prices.
