Gold, silver ETFs tumble up to 3.6% as precious metals slide on US Fed rate-hike fears

Mon Sep 28 2026

Gold and silver ETFs fell sharply on Monday, tracking a global sell-off in precious metals as rising crude oil prices fuelled inflation concerns and strengthened expectations of further US Federal Reserve rate hikes.

Silver ETFs bore the brunt of the decline, falling as much as 3.6 percent, while gold ETFs dropped more than 2 percent. The weakness came alongside a broader risk-off move in Indian equities, with the Sensex crashing 975 points, or 1.3 percent, at 72,920 and the Nifty falling 310 points to 22,830 at 12:10 pm.

SBI Silver ETF was the biggest loser among the major precious-metal ETFs, falling 3.59 percent to Rs 216.23. Nippon India Silver ETF declined 3.57 percent to Rs 210.99, Tata Silver Exchange Traded Fund slipped 3.51 percent to Rs 21.43, while ICICI Prudential Silver ETF was down 3.44 percent at Rs 220.49.

Gold ETFs also traded firmly in the red. ICICI Prudential Gold ETF fell 2.64 percent to Rs 125.63, SBI Gold ETF declined 2.55 percent to Rs 125.16 and Nippon India ETF Gold BeES dropped 2.45 percent to Rs 121.38. Tata Gold Exchange Traded Fund was down 2.26 percent at Rs 14.29.

The losses mirrored a sharp correction in international bullion markets. Spot gold fell 2.1 percent to $4,198.10 an ounce and was on course for its biggest daily decline since September 1, while US gold futures dropped 2.1 percent to $4,231. Spot silver suffered an even steeper fall, losing 3.4 percent to $62.08 an ounce.

Domestic commodity markets reflected the same pressure. MCX silver futures for September 2026 delivery plunged Rs 6,661 to Rs 2,28,035 per kg, while October 2026 gold futures declined Rs 3,214 to Rs 1,47,667 per 10 grams.

The sell-off in precious metals came as crude oil prices climbed after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. Brent crude futures jumped $3.43, or 3.29 percent, to $107.75 a barrel, keeping concerns over energy-driven inflation elevated.

Higher inflation expectations have, in turn, increased concerns that the Fed may have to tighten monetary policy further. The Fed raised its target rate by 25 basis points earlier this month to 3.75-4 percent. Traders are now pricing in a 68 percent probability of another US rate hike in October, Reuters reported citing CME's FedWatch Tool.

Higher interest rates typically weigh on non-yielding assets such as gold and silver by raising the opportunity cost of holding them. The dollar, while under some pressure on Monday, also remained near a two-month high as the US-Iran conflict continued to push oil prices and bond yields higher.

The weakness was not confined to gold and silver. Spot platinum fell 2.7 percent to $1,730.78 an ounce, while palladium declined 2.8 percent to $1,231.46, reflecting the broad-based sell-off across precious metals.

Source: https://www.moneycontrol.com/