Silver, gold ETF rout deepens as metals' historic plunge continues

The crises in gold and silver exchange-traded funds (ETFs) deepened on Monday, falling for the third straight session, as the precious metals' historic rout continued, with the prices plunging in domestic and global markets.

Gold ETFs slipped between 6 per cent and 11 per cent in the intraday trade on the National Stock Exchange (NSE) today, while Silver ETFs fell around 20 per cent.

Among silver ETFs, the HDFC Silver ETF fell 19.2 per cent, while the Nippon India Silver ETF declined 18 per cent. Kotak Silver ETF and ICICI Prudential Silver ETF tumbled 20 per cent each, while SBI Silver ETF and Axis Silver ETF also fell 20 per cent.

Gold ETFs also came under pressure. The Aditya Birla Sun Life Gold ETF declined 10.5 per cent, Axis Gold ETF fell 6.6 per cent and Tata Gold ETF slipped 7.8 per cent. Nippon India Gold ETF dropped 8 per cent, while LIC MF Gold ETF fell 6.5 per cent and DSP Gold ETF declined nearly 6 per cent.

The ETFs were taking cues from the fall in gold and silver prices. Multi-Commodity Exchange (MCX) gold March 5 futures are down 5 per cent at ₹1,37,390 per 10 grams on Monday, while the March contracts for MCX silver were down 6 per cent at 2,49,713 per KGs.

In the global market, spot gold and silver prices were lower by 6 per cent and 11.8 per cent, respectively. From their record highs, gold and silver are down 13.5 per cent and 32 per cent.

Following the biggest plunge in more than a decade on Friday for gold and the biggest ever intraday loss for silver, the precious metals continued to see selling pressure. According to reports, the trigger for Friday’s selloff was the news that US President Donald Trump would nominate Kevin Warsh to lead the Federal Reserve.

Commenting on the sharp crash in gold and silver prices, a "rare" event, Zerodha founder and Chief Executive Officer Nithin Kamath said such episodes are when risk management breaks down, with markets moving so violently that traders can lose more than their entire initial margin. He added that in his 16 years in the markets, he has seen a similar situation only once before, when crude oil prices turned negative during the Covid-19 pandemic.

The recent decline in Gold and Silver ETFs is primarily a reflection of the fall in international gold and silver prices, particularly on 30th January 2026, as seen in LBMA prices, Sriram B K R, Senior Investment Strategist, Geojit Financial Services, said in a February 1 note. Prices are still at elevated levels, he said, adding that if supported by new, sustainable fundamental factors, they may hold, though the current signals are mixed.

Global tensions and uncertainty may continue to support gold as long as they persist, Sriram said. "Both asset classes appear due for a price consolidation, though timing such a move is extremely difficult. We continue to advise investors not to chase recent rallies and instead remain disciplined with asset allocation. Investors should exercise caution at these levels."