Gold ETFs fell up to 6.07% as global precious metal prices plunged.
Silver ETFs crashed by 18.71%, driven by intense selling in commodity markets.
Unchanged Union Budget customs duties triggered high volatility across gold and silver
Gold and silver exchange-traded funds (ETFs) extended their decline on Monday as prices of the precious metals plunged sharply in both domestic and global markets, dragging down ETF valuations across the board.
Gold ETFs on the National Stock Exchange (NSE) fell between 1% and over 6% in intraday trade. Baroda BNP Paribas Gold ETF recorded the steepest decline, slipping 6.07%. Other major funds also saw sharp cuts, with Tata Gold ETF down 4.32%, Mirae Asset Gold ETF falling 4.28%, and HDFC Gold ETF declining 4.27%.
1 January 2026
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Silver ETFs witnessed even steeper losses. Tata Silver ETF plunged 18.71%, while HDFC Silver ETF fell 15.00% and Groww Silver ETF declined 14.34% during the session, reflecting heightened volatility in silver prices.
Fall in Gold & Silver Prices
The sharp correction in ETF prices followed a fall in gold and silver prices.
On this, Sriram BKR, Senior Investment Strategist, Geojit Financial Services said, “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.
Gold futures with March 5 expiry on the Multi Commodity Exchange (MCX) dropped nearly 9% on Monday relative to the previous day close of ₹1,44,612. The derivative recovered during the closing hours to close at 147179 (1.78% high).
Silver futures saw heavier selling pressure. MCX silver contracts for March 5 expiry declined about 14.9% overall during the session and were trading near ₹2,45,865 by the closing hours, down roughly 7.45%.
What Led the Fall
Sriram said gold and silver prices remain at elevated levels and may sustain only if backed by new and durable fundamental drivers, though current signals are mixed. He added that ongoing global tensions and uncertainty could continue to support gold prices for as long as those risks persist. However, both asset classes appear due for a phase of price consolidation, even though predicting the exact timing of 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,” he said.
Gold and silver have delivered an unprecedented rally over the past year. Data shows that until January 29, silver surged 319% year-on-year in rupee terms, while gold rose 118%. Even after a sharp correction on January 30, around 11% in silver and 4.3% in gold, silver is still up 268% year-on-year, while gold remains 108% higher.
“The ETF prices have turned volatile on the downside, also on the back of expectation around changes in customs duty on Gold & Silver, in the Union Budget,” Sriram said.
