Silver and gold ETFs rally up to 8% as US-Iran peace deal boosts sentiment. Should you invest now?

Silver and gold ETFs rallied up to 8% on Monday after precious metal prices extended gains for a third consecutive session, opening sharply higher on the Multi Commodity Exchange (MCX) after US and Iranian officials announced a preliminary agreement aimed at ending their conflict.

According to Pakistani Prime Minister Shehbaz Sharif, the proposed US-Iran agreement, which envisages the removal of the US blockade on Iran and the reopening of the Strait of Hormuz, is scheduled to be formally signed in Switzerland on Friday.

Out of 18 silver ETFs, Angel One Silver ETF rallied the most, by around 8%, to hit its day’s high of Rs 9.83. ICICI Prudential Silver ETF and Bandhan Silver ETF rallied up to 6% each. SBI Silver ETF, HDFC Silver ETF and Zerodha Silver ETF gained between 3% and 5%.

There were 22 gold ETFs in the said time period that gained between 2% and 4%. Nippon India ETF Gold BeES and HDFC Gold ETF were up 2% each.

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Abhishek Bhilwaria, Partner, Bhilwaria Finserv, told ETMutualFunds that investors should maintain active equity and gold SIPs, leveraging systematic allocations to capture current market momentum while protecting against volatility.
“One should continue existing equity SIPs without interruption to benefit from rupee cost averaging, but avoid deploying large lump sum amounts at these elevated resistance levels. Concurrently, utilising gold mutual funds for regular monthly investments serves as an effective portfolio hedge against sudden geopolitical shifts or inflationary pressures.”He further said that investors should keep overall gold exposure capped at 10% to 15% of the total portfolio, and use any short-term market dips as strategic opportunities to systematically accumulate quality assets.

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In the domestic market, MCX silver futures for July 2026 delivery were up Rs 7,200 (2%) to Rs 2,53,345 per kg. Gold futures for August 2026 delivery rose Rs 3,301 (2%) to Rs 1,53,829 per 10 grams.

In the international market, spot gold rose 2% to $4,304.11 an ounce, its highest level since June 9, while US gold futures for August delivery gained 2% to $4,325.20. Among other precious metals, spot silver climbed 3.1% to $70.07 an ounce.

Jigar Trivedi of IndusInd Securities recommends fresh buying in gold in the Rs 1,49,700 to Rs 1,48,800 range with a stop loss below Rs 1,47,700 and targets of Rs 1,51,150 to Rs 1,52,200.

For silver, Trivedi recommends buying in the Rs 2,44,400 to Rs 2,41,000 range with a stop loss below Rs 2,37,700 and targets of Rs 2,51,000 to Rs 2,53,500.

(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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