Gold, silver ETFs decline up to 8% as West Asia crisis spooks investors

Gold and silver exchange-traded funds (ETFs) came under heavy pressure on Monday, March 23, 2026, as rising geopolitical tensions between the US and Iran dampened risk appetite, with precious metals witnessing a sharp corrective phase driven by profit-booking, a stronger US dollar, and mixed signals from ongoing Middle East developments.

 

At last check, the Invesco India Gold ETF was down 7.4 per cent, while other gold ETFs witnessed steep losses. Axis Mutual Fund’s Axis Gold ETF fell 7.15 per cent, Kotak Gold ETF lost 6.67 per cent, ICICI Prudential Gold ETF declined 6.69 per cent, SBI Gold Exchange Traded Scheme – Growth Option dropped 6.39 per cent, and Baroda BNP Paribas Gold ETF was lower by 6.57 per cent. Among the broader set of retail-centric products, Angel One Gold ETF was down 6 per cent, Groww Gold ETF fell 6.4 per cent, and DSP Gold ETF declined 6.3 per cent, resulting in overall gold prices slipping about 6 per cent.

 

 

Silver ETFs also traded sharply lower, echoing the sell-off in bullion. Aditya Birla Sun Life Silver ETF fell 7.8 per cent, Zerodha Silver ETF dropped 7.69 per cent, Angel One Silver ETF declined 7.91 per cent, Tata Silver ETF was down 7.83 per cent, 360 ONE Silver ETF lost 7.86 per cent, ICICI Prudential Silver ETF slipped 7.86 per cent, Mirae Asset Silver ETF was off 7.8 per cent, and Groww Silver ETF declined 8 per cent.

 

On the futures ring, the weakness mirrored ETF movements. Gold April futures on the MCX dropped 4.5 per cent to ₹1,37,928 per 10 gm, while Silver May futures fell 5.3 per cent to ₹2,14,745 per kg.

 

According to Ponmudi R, CEO of Enrich Money, precious metals have come under visible pressure following a sharp corrective phase driven by profit-booking, a stronger US dollar, and mixed signals from ongoing Middle East geopolitical developments. “While safe-haven demand had earlier supported the rally, recent volatility has impacted sentiment, leading to notable weekly declines in gold and silver,” he said.

 

“After testing previous highs, precious metals have entered a pullback phase, with prices now moving toward key support zones as caution dominates sentiment amid elevated event risks. A selective buy-on-dips strategy near strong support zones is preferred, as longer-term macro tailwinds remain supportive, although near-term pressures from dollar strength and any signs of geopolitical easing could limit upside momentum,” Ponmudi added. 

Broader market sentiment remains fragile

Broader market sentiment was also fragile on Monday as the war in West Asia entered its fourth week with no clear resolution in sight. The conflict escalated further after former President Trump issued an ultimatum to Iran to open the Strait of Hormuz within 48 hours.

 

Indian benchmark equity indices reflected the global risk-off mood. The NSE Nifty50 was trading lower by 458 points or 1.98 per cent at 22,656, while the BSE Sensex was quoted at 73,074, down 1,458 points or 1.96 per cent.  

Meanwhile, an Iranian presidential statement that “the Strait of Hormuz is open to all except those who violate our soil” helped prevent panic in oil markets. Still, uncertainty remains elevated, noted VK Vijayakumar, chief investment strategist at Geojit Investments, with markets keeping a close watch on developments.

 

Brent crude futures were quoted at $112.78 per barrel, up 0.53 per cent, while WTI crude futures rose 0.82 per cent to $99.04 per barrel.

 

“It is important to understand that the huge global risk-off has impacted all assets, including stocks, bonds, and precious metals like gold and silver. In fact, the decline in gold, a traditional safe haven, is steeper than in equities. During such crises, characterized by enormous uncertainty, investors should not panic but stay calm,” Vijayakumar advised.  ========================================  (Disclaimer: Views and recommendations are those of the brokerage/analyst and are not endorsements. Readers should exercise discretion.)