Gold, silver ETFs plunge as precious metals retreat; analysts weigh

Gold and Silver exchange-traded funds (ETFs) declined on Friday, January 30, 2026, as precious metals prices retreated. At 9:58 AM, among others, Bandhan Silver ETF and Nippon Silver ETF were down over 5 per cent; ICICI Prudential Silver ETF, Tata Silver ETF, HDFC Silver ETF, Aditya Birla Sun Life Silver ETF, Groww Silver ETF, and Axis Silver ETF were down over 4 per cent. Additionally, Axis Silver ETF, SBI Silver ETF, Kotak Silver ETF and DSP Silver ETF slipped over 3 per cent.

 

At around the same time, DSP Gold ETF slumped 4.39 per cent; Nippon Gold ETF, Axis Gold ETF, and Groww Gold ETF declined over 3 per cent. Meanwhile, Aditya Birla Sun Life Gold ETF and Bandhan Gold ETF fell over 2 per cent.

 

 

The ETFs were mirroring the fall in the gold and silver prices, which saw a record rally earlier. On Multi Commodity Exchange (MCX), silver February futures were trading around 2.75 per cent or ₹11,281 lower at ₹3,99,423 per kg, and gold March futures were trading 1.16 per cent or ₹2,082 lower to ₹1,78,050 per 10 gram. 

 

In January so far, MCX spot silver has rallied 67 per cent and gold has gained nearly 32 per cent, according to data compiled by Bloomberg. 

Why did safe-haven asset prices fall today?

Analysts cited the following reasons for fall in gold and silver prices today:  

Iran uncertainty: US keeping all options open—negotiations possible via Turkey or direct talks, but also potential military strike. This geopolitical ambiguity is weighing on safe-haven demand. 

Russia-Ukraine War stalemate: Conflict likely to persist due to humanitarian concerns, reducing immediate escalation fears and safe-haven appeal. 

US Fed chair nomination shift: Market is betting on Kevin Walsh who has a hawkish view. A Walsh appointment would kill the "loose monetary policy" narrative, supporting the US dollar and pressuring precious metals. 

Crucial US economic data ahead: Next week brings critical reports—ISM manufacturing, ISM services, ADP employment data, and non-farm payroll. Fed signalled extended pause on January 28 (economy stable, job market stabilising). A strong jobs report would reinforce "no rate cuts until July," supporting the dollar and weighing on gold and silver.

 

Analysts’ view on gold, silver ETFs

 

Thomas Stephen, director & head - preferred, Anand Rathi Share and Stock Brokers suggests having structural view on gold and silver. 

"When investing into either metal, one should have a structural view on them before taking the plunge. Both metals, especially Silver, have a history of price volatility, especially so with Silver. If one is truly thinking long term, we believe entry in silver ETFs should be done via SIP/STP instead of lumpsum, as the structural demand for silver across industries remains strong. For Gold, it remains an important asset allocation took in the portfolio. Ideally, both metals in combination should not exceed more than 10 per cent of your overall portfolio," said Stephen.  

On the long-term outlook, Praveen Singh, head of  commodities, Mirae Asset ShareKhan, remains positive on both gold and silver, driven by elevated geopolitical risks and a deteriorating fiscal backdrop in key economies. 

"For gold, we target $7,000–$10,000 over 3–4 years, with Indian gold prices potentially rising 40–100 per cent in that period; for this year, we're looking at $5,500–$6,500. Silver could appreciate 50–60 per cent over 3–4 years, potentially reaching ₹6 lakhs on MCX futures, with a near-term target of $120–$150 (approximately 40 per cent upside from current levels)," said Singh. 

 

 

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