Gold, silver ETFs slip up to 3% on US tariff uncertainty. What should investors do?

Tue Feb 24 2026

Gold and silver ETFs fell by up to 3% on Tuesday as gold and silver prices opened marginally lower on the MCX, with investors weighing the pressure from a stronger US dollar against the uncertainty surrounding US tariffs and rising tensions between Washington and Tehran.
Groww Gold ETF, SBI Gold ETF and HDFC Gold ETF fell 3% each on Tuesday. UTI Gold ETF declined 2%, while most other gold ETFs remained largely flat. Meanwhile, the majority of silver ETFs were down around 1%.

Satish Dondapti, Fund Manager ETF, Kotak Mutual Fund, in a conversation with ETMutualFunds, said, “At current levels, gold and silver fundamentals remain strong for the long term, supported by central bank buying, geopolitical uncertainty, expectations of interest rate cuts, declining confidence in fiat currencies, rising global debt, and increasing industrial demand—especially for silver.”

Investors should allocate according to their risk appetite, limit precious metals exposure to around 15–20% of their portfolio, avoid buying aggressively at higher prices, and instead invest gradually with a long-term perspective, the fund manager at Kotak Mutual Fund added further.

MCX Gold futures due April 2026 were down Rs 983 or 0.55% to Rs 1,60,615 per 10 grams. Meanwhile, silver futures for March 5, delivery edged lower by Rs 1,006 or 0.3% to Rs 2,64,327 per kg.

In the international market, spot gold fell 1.5% to $5,150.38 per ounce as of 0125 GMT, after touching its highest level in over three weeks earlier in the session. Silver prices also declined, with spot silver dropping 3.1% to $85.50 per ounce after hitting a more than two-week high on Monday.

Manoj Kumar Jain of Prithvi Finmart recommended buying gold on dips around Rs 1,60,000–Rs 1,59,100 with a stop loss below Rs 1,57,700 for a target of Rs 1,63,300–Rs 1,65,000. For silver, he recommends buying in the Rs 2,60,000–Rs 2,55,500 range, with a stop-loss below Rs 2,51,000 and a target of Rs 2,70,000–Rs 2,74,000.

Abhishek Bhilwaria, AMFI-registered MFD at BhilwariaMF, told ETMutualFunds that as of February 24, 2026, gold is trading near Rs 1,61,500 per 10 grams, while silver has rebounded to around Rs 3,00,000 per kg. He attributed the gains to strong safe-haven demand, continued central bank buying and industrial growth in green energy sectors.

Bhilwaria recommends maintaining a total precious metals allocation of 10–15% in a portfolio, typically following a 60:40 split — 60% in gold for stability and 40% in silver for growth — to balance gold’s role as an inflation hedge with silver’s higher-volatility upside potential.

He added that given the current price peaks and the risk of sharp corrections — such as silver’s 14% decline earlier in February — investors should avoid lump-sum investments. Instead, they should consider Systematic Investment Plans (SIPs) or staggered buying to average out costs and manage volatility.

Tue Feb 24 2026

Gold and silver ETFs fell by up to 3% on Tuesday as gold and silver prices opened marginally lower on the MCX, with investors weighing the pressure from a stronger US dollar against the uncertainty surrounding US tariffs and rising tensions between Washington and Tehran.

Groww Gold ETF, SBI Gold ETF and HDFC Gold ETF fell 3% each on Tuesday. UTI Gold ETF declined 2%, while most other gold ETFs remained largely flat. Meanwhile, the majority of silver ETFs were down around 1%.

Source: https://economictimes.indiatimes.com/