Silver recovery is being driven by ceasefire optimism that is keeping the oil prices capped. Safe-haven flows seem to be largely absent
In the international market, spot gold was up 2.5 per cent at $4,819.25 per ounce. Similarly, spot silver also jumped 5.5 per cent to $76.91 per ounce
Gold and silver ETFs were in demand in the week's first trading session, rising over 2% as safe-haven buying surged amid West Asia tensions
Gold April futures on the MCX traded higher by 3.78 per cent at ₹1,44,370 per 10 gm, while silver May futures gained 5.54 per cent to ₹2,36,338 per kg
Nearly 3 million accounts added at peak, just before prices reversed
Silver prices nosedived to hit their lower circuit in futures trade on Monday, tumbling by Rs 20,409 to Rs 2.06 lakh per kilogram amid weak global trends and sustained selling pressure. On the Multi Commodity Exchange, silver for May delivery slumped Rs 20,409, or 9 per cent, to Rs 2,06,363 per kilogram, its lower circuit limit. Analysts said the sharp fall came despite escalating tensions in West Asia, as broader macroeconomic factors weighed heavily on precious metal prices. Silver prices have fallen sharply on Monday despite escalating West Asian tensions due to overriding macroeconomic pressures, Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said. He added that a strong US dollar and rising Treasury bond yields have weakened bullion by increasing holding costs and making dollar-denominated metals more expensive for global buyers. In the international market, silver futures on the Comex for the May contract declined by USD 6.51, 9.34 per cent, to USD 63.15 per
Broader market sentiment was also fragile on Monday as the war in West Asia entered its fourth week with no clear resolution in sight
Silver, like gold, remains under acute downside pressure as hardening yields and fading rate-cut expectations reflect central banks' heightened vigilance against the spectre of inflation.
On Thursday, Brent crude futures climbed $3.69, or 3.44 per cent, to $111.07 per barrel. The US West Texas Intermediate crude rose $2.29, or 2.38 per cent, to $98.61 per barrel
Despite the month-on-month (M-o-M) dip, inflow remains substantial, accounting for 54 per cent of all ETF flows in February: Siddharth Srivastava
So far this year, MCX spot silver has rallied 6.5 per cent and gold has gained nearly 16.4 per cent, according to data compiled by Bloomberg
The report highlights a clear divergence in behavior between Indian retail investors and global institutional players, identifying four distinct phases in the silver ETF net flow.
At 10:48 AM, among others, DSP Silver ETF and Axis Silver ETF up 4 per cent each
At 9:23 AM, DSP Silver ETF climbed 0.32 per cent, UTI Silver ETF gained 0.27 per cent, and Groww Silver ETF rose 0.16 per cent
February flows trail January's record amid profit booking
Gold ETFs were also under pressure. Axis Mutual Fund Gold ETF, Union Gold ETF, and The Wealth Company Gold ETF traded lower by over 4 per cent
The US and Israel fired missiles across Iran on Saturday, with the Supreme Leader Ayatollah Ali Khamenei being killed
In February so far, MCX spot silver has fallen 25 per cent and gold has fallen nearly 6 per cent, according to data compiled by Bloomberg
Gold futures for April delivery edged higher to ₹1,56,050 per 10 gram on the MCX during the morning session, while silver futures for March delivery rose to ₹2,44,901 per kilogram
The January inflow in Gold ETFs exceeded the net investment in equity schemes last month, which stood at ₹24,028.59 crore