Gold, silver ETFs slide up to 24% as precious metals retreat from record highs; what’s driving the fall
- 30th January 2026
- 07:00 PM
- 4 min read
Summary
Gold and silver ETFs witnessed sharp losses on January 30 after prices of both metals corrected steeply from record highs. The sell-off was triggered by a sharp fall in global metal prices amid speculation around a more hawkish US Federal Reserve leadership, a stronger dollar and profit-booking after an extended rally.Mumbai | January 30
Gold and silver exchange-traded funds (ETFs) came under heavy selling pressure on Friday as precious metal prices corrected sharply after hitting record highs earlier this week. The fall marks one of the steepest single-day declines in gold and silver prices in recent months, rattling investor sentiment across commodity-linked funds.
On the Multi Commodity Exchange (MCX), gold futures with April expiry fell nearly 9% to around ₹1,68,000 per 10 grams, a day after touching an all-time high of ₹1,93,096. Contracts with February and June expiries also slipped by about 9% during the session.
Silver saw an even sharper correction. March silver futures dropped nearly 15% to ₹3,39,910 per kg, while May and July contracts declined between 12% and 15%.
Gold and silver ETFs take a hit
The sharp correction in futures prices spilled over into ETF markets.
Among gold ETFs, Nippon India ETF Gold BeES – which had delivered over 100% returns over the past year – fell around 10%. ICICI Prudential Gold ETF slipped close to 10%, while Axis Gold ETF declined about 12%. UTI Gold ETF, HDFC Gold ETF, DSP Gold ETF, Edelweiss Gold ETF and Quantum Gold ETF also posted significant losses.
Silver ETFs saw deeper cuts. Axis Silver ETF plunged nearly 24%, while ICICI Prudential Silver ETF and Kotak Silver ETF fell around 23% each. SBI Silver ETF declined over 22%, with similar losses seen in Mirae Asset, Motilal Oswal, HDFC and Nippon India silver ETFs.
Why are gold and silver prices falling?
The sell-off in precious metals was driven by a combination of global cues.
A key trigger was growing speculation that the next US Federal Reserve chair could adopt a more hawkish stance on interest rates. Markets are increasingly pricing in the possibility of tighter monetary policy, which typically weighs on non-yielding assets such as gold and silver.
The correction also followed an extended rally, with both metals trading in overbought territory. Gold prices had surged to record levels on safe-haven demand, while silver had rallied sharply on a mix of industrial demand and speculative interest. A rebound in the US dollar further added pressure to metal prices.
What should investors do now?
Despite the sharp correction, long-term views on precious metals remain mixed.
According to Sandip Raichura, CEO – Retail Broking and Distribution & Director, PL Capital, short-term price action should be viewed in the context of a larger global reset.
“Gold price movements based on the past may no longer work. We believe the world is witnessing a once-in-a-century phenomenon, and therefore gold could head much higher over the next two years,” he said, adding that long-term investors should avoid reacting to near-term volatility.
On silver, Rajkumar Subramanian, Head- Product& Family Office, PL Wealth noted that while the metal’s long-term fundamentals remain strong, volatility is an inherent feature.
Silver prices in India have surged from around ₹1.5–1.6 lakh per kg in early 2025 to above ₹4 lakh per kg by late January 2026, translating into gains of over 160% in a year. The rally has been supported by rising industrial demand from sectors such as solar, electronics and manufacturing, alongside tight supply conditions.
However, silver’s historical volatility – often significantly higher than gold – increases the risk of sharp interim corrections after such a steep run-up.
From an investment perspective, experts recommend staggered and calibrated allocations rather than lump-sum investments, especially at elevated price levels, to manage entry risk while staying invested in the metal’s longer-term structural theme.
Bottom line
The sharp fall in gold and silver ETFs reflects a classic correction after an outsized rally, amplified by global monetary policy uncertainty. While near-term volatility may persist, investors are split between buying the dip and waiting for stability – making allocation strategy and risk management more important than timing the bottom.
Investors should avoid buying on FOMO or for short-term trades, as prices can remain volatile. Over the long term, however, the fundamental case for gold and silver remains intact.
For more updates on markets follow PL Capital.
