Gold, Silver ETFs Drop Up to 53%; Silver Hits 11-Month Low

Bullion’s Sharp Retreat Tests ETF Investors’ Resolve

A steep correction in international prices has pulled gold and silver funds well below their recent peaks, while key US policy signals loom.

A one-day decline sits within a much deeper correction

Gold and silver ETFs traded lower on Tuesday, tracking losses in international bullion. Several silver funds, including those from Kotak, HDFC, Mirae Asset, UTI, SBI, Tata, Edelweiss, DSP and Axis, fell around 2%. The cited gold ETFs were down by a smaller 0.2% to 0.4%.

Those daily moves are modest beside the declines from the funds’ 52-week highs. DSP Silver ETF was at ₹18.17, 53.4% below its high of ₹39, while several other silver ETFs had fallen more than 50% from their peaks. Gold funds had also retreated: Baroda BNP Paribas Gold ETF was down 26% from its 52-week high, and a number of peers were lower by 21% to 25%.

The distinction matters: Tuesday’s trading reflects the latest session, while the larger drawdowns measure a prolonged reversal from earlier highs. A fund’s fall from a peak does not, by itself, indicate what its next move will be.

Silver’s losses have outpaced gold’s

International silver was quoted at $52.81, around an 11-month low and more than 21% below its level two months earlier. It had fallen 56.6% from its January record of $121.76. Gold, meanwhile, slipped close to $4,000, down nearly 11% on the reported session and 29% from its peak of $5,626.80.

For ETF holders, the scale of silver’s decline highlights the risk of treating precious metals as interchangeable holdings. Both funds are exposed to bullion prices, but the current figures show a sharper retreat in silver. Recent losses can also make short-term price swings more difficult for investors to tolerate, particularly when they entered near the record highs.

Rates, yields and the dollar shape the near-term outlook

The sell-off comes as investors look ahead to the US Federal Reserve’s policy decision and signals on future rates. Analysts cited in the report linked pressure on gold to rising Treasury yields, with the 10-year US yield approaching 5%. Higher yields can increase the opportunity cost of holding metals, which do not pay interest.

The Fed was widely expected to keep rates at 3.75% to 4% on Wednesday. US third-quarter GDP and PCE inflation data due Thursday were identified as important inputs for expectations around the December policy decision. A stronger dollar has also been limiting gold’s recovery, adding another variable for bullion investors.

The technical levels cited by one analyst put immediate gold support at $3,970–$4,000, followed by $3,900. For silver, a sustained move above $54 was seen as necessary to improve near-term stability; the analyst’s near-term bias remained cautiously bearish. These are market assessments, not guarantees that prices will hold or rebound at those levels.

Key Highlights

• Silver was quoted at $52.81, down 56.6% from its January record of $121.76.
• Gold slipped close to $4,000 and was 29% below its reported peak.
• DSP Silver ETF was down 53.4% from its 52-week high; multiple silver funds had lost more than half their peak value.
• Analysts pointed to US Treasury yields, the dollar and Fed expectations as near-term bullion drivers.
• US GDP and PCE inflation data were expected to inform rate expectations beyond the Fed decision.

Investor Note: The sharp fall from recent highs underlines the volatility of gold and silver ETFs, especially during a rapid reversal in bullion prices. Investors should distinguish between a fund’s peak-to-current decline and its prospects from here, and consider their time horizon and tolerance for further swings rather than relying on a rebound at any cited support level.