Gold, Silver ETFs fall up to 12% amid weak trends

March 23, 2026

Gold and silver exchange-traded funds (ETFs) witnessed a sharp decline of up to 12% on Monday, tracking a steep fall in global bullion prices amid weak market sentiment and shifting investor preferences.

Sharp fall across major ETFs

Several prominent ETFs, including those offered by SBI, Nippon India, and ICICI Prudential, recorded significant losses as precious metal prices extended their downward trend. Silver ETFs were among the worst hit, reflecting the sharper correction in silver prices compared to gold.

The fall in ETFs mirrors the movement in international and domestic bullion markets, as ETF prices are directly linked to underlying asset values. Analysts noted that the correction was broad-based across the sector, impacting both gold- and silver-linked funds.

Global sell-off impacts Indian market

The primary reason behind the crash is the ongoing global sell-off in precious metals. Gold prices have dropped sharply in recent sessions, with the metal falling over 5% and witnessing one of its worst weekly declines in decades.

Silver prices have also plunged significantly, amplifying losses in silver ETFs. The decline reflects changing global market dynamics, where traditional safe-haven assets are currently under pressure.

Why is gold price falling?

Several key factors are driving the decline in gold and silver prices:

• Rising interest rate expectations:
  Increasing expectations of rate hikes by central banks, particularly the US Federal Reserve, have reduced the appeal of non-yielding assets like gold.
• Stronger US dollar:
  A stronger dollar has made gold more expensive for global investors, leading to reduced demand and lower prices.
• Profit booking after rally:
  Gold had seen a strong rally earlier, and investors are now booking profits, adding to selling pressure.
• Shift in investor sentiment:
  Despite geopolitical tensions, investors are moving towards yield-generating assets, reducing demand for safe-haven metals.
• Inflation and oil price concerns:
  Rising oil prices and inflation fears are pushing central banks towards tighter monetary policies, which negatively impact gold.

Unusual trend despite global tensions

Interestingly, the decline comes at a time when geopolitical tensions, particularly in the Middle East, would typically support gold prices. However, markets are behaving differently this time, with gold acting more like a risk asset rather than a safe haven.

Experts believe that much of the geopolitical risk had already been priced in earlier, leading to a reversal in trend once market expectations shifted.

Outlook remains volatile

Market experts suggest that the short-term outlook for gold and silver remains uncertain. While further downside cannot be ruled out if interest rates continue to rise, any escalation in global tensions or economic instability could trigger a rebound in prices.

Investors are advised to remain cautious and avoid panic selling, as volatility in commodity markets is expected to persist in the coming weeks.