Silver and gold commodity based ETFs rally up to 3%. What should investors do?

Silver and gold commodity-based ETFs gained up to 3% on Monday even as bullion prices opened lower on the Multi Commodity Exchange of India, amid rising crude oil prices that stoked inflation concerns and reinforced expectations of interest rates staying elevated for longer due to stalled U.S.-Iran peace talks.

Among 18 silver ETFs, Nippon India Silver ETF, Tata Silver ETF, ICICI Prudential Silver ETF, and 360 One Silver ETF gained 3% each on their respective day’s high level. The other ETFs in the category went up 2% each.

There were 25 gold ETFs which gained ranging between 1% to 2% whereas three remained flat on Monday.

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Anup Bhaiya, Founder, Money Honey Wealth Services Ltd shared with ETMutualFunds on Friday, gold edged higher to around $4,710–$4,725 per ounce while silver held steady near $75–$76 amid ongoing macro adjustments.

He further said that for long-term investors, this consolidation phase after recent volatility offers an attractive window to accumulate, supported by precious metals’ enduring safe-haven appeal and inflation-hedging role in an uncertain global environment.
The expectations of renewed diplomatic progress weakened over the weekend again after the U.S. President Donald Trump cancelled a planned Islamabad visit by his envoys Steve Witkoff and Jared Kushner. This came even as Iranian Foreign Minister Abbas Araqchi arrived in Pakistan.
In the domestic market, MCX silver futures for May 2026 delivery fell Rs 21,400 or 0.5%, to Rs 2,43,253 per kg. Gold futures for June 2026 delivery were little changed at Rs 1,52,640 per 10 grams. In the previous session, silver climbed around Rs 3,000, while gold advanced by more than Rs 1,000.
Rising crude oil prices tend to fuel inflation by increasing transportation and production costs, which in turn raises the likelihood of higher interest rates. Although gold is traditionally seen as a hedge against inflation, higher interest rates reduce its appeal by making yield-bearing assets more attractive.

Abhishek Bhilwaria, AMFI registered MFD told ETMutualFunds that today’s investors are largely sticking to their Systematic Investment Plans (SIPs) despite recent market volatility, viewing the current dip as an opportunity to benefit from rupee cost averaging.

While benchmark indices like the Nifty 50 have pulled back from recent highs due to geopolitical tensions and high oil prices, retail participation remains at record levels, with monthly SIP inflows hitting new peaks.”

Bhilwaria further said that investors are generally shifting their focus toward defensive sectors like FMCG and Pharma while maintaining discipline, as historical data suggests that staying invested through these “lows” is essential for long-term wealth creation so instead of panicking, the consensus is to ignore short-term noise and allow SIPs to accumulate more units at lower prices.

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Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain volatile this week due to movement in the dollar index, fluctuations in crude oil prices, the upcoming Federal Reserve monetary policy meetings, and ongoing U.S.-Iran peace talks.

Jain recommends buying gold on dips as long as it holds Rs 1,48,800 on a closing basis, with upside targets of Rs 1,53,800-Rs 1,55,000 and buying silver while it holds Rs 2,35,000 on a closing basis, with targets of Rs 2,48,000-Rs 2,51,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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