Silver, gold ETFs rally up to 6% as Iran ceasefire eases inflation fears. Should you buy?

Silver and gold ETFs rallied up to 6% on Wednesday as gold and silver prices opened sharply higher on the Multi Commodity Exchange of India (MCX), tracking gains in global bullion markets after U.S. President Donald Trump agreed to a two-week ceasefire with Iran, easing concerns over energy-driven inflation.

Kotak Silver ETF and ICICI Prudential Silver ETF rallied up to 6% each. Nippon India Silver ETF, SBI Silver ETF, HDFC Silver ETF went up 5% respectively whereas Edelweiss Silver ETF gained 4% to hit its day’s high of Rs 240.04.

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ICICI Prudential Gold ETF went up 4% to its day’s high of Rs 131.12 against previous close of Rs 126.22. Five gold ETFs i.e. Nippon India ETF Gold BEeS, Kotak Silver ETF, HDFC Silver ETF, SBI Silver ETF, and Edelweiss Silver ETF gained 3% each.

Anup Bhaiya Founder Money Honey Wealth Services Ltd shared with ETMutualFunds that on Tuesday, gold steadied near $4,650–$4,680 while silver held firm around $72–$74 amid ongoing macro adjustments.

For long-term investors, current levels present an attractive consolidation zone to accumulate, supported by persistent safe-haven demand, central bank buying, and inflation-hedging fundamentals, he further said.
MCX silver futures due May 2026 were up Rs 13,422 or 6% to Rs 2,44,770 per kg. Meanwhile, gold futures for June 2026 delivery gained Rs 3.655 or 2.4% to Rs 1,53,944 per 10 grams.
In the international market, yellow metal prices rose to a near three-week high on Wednesday. Spot gold was up 2.3% at $4,812.49 per ounce as of 0215 GMT. Earlier in the session, bullion had surged more than 3% to its highest level since March 19. U.S. gold futures for June delivery also advanced 3.4% to $4,841.60. Among other metals, spot silver climbed 4.9% to $76.48 per ounce.
The change in stance came just before Trump’s deadline for Iran to reopen the Strait of Hormuz, which is a crucial route that carries about 20% of the world’s oil supply, or risk widespread attacks on its civilian infrastructure.

On Monday and Tuesday, these precious metal ETFs remained flat. Trump wrote on social media that “This will be a double sided CEASEFIRE!”. Earlier on Tuesday, he had warned that “a whole civilization will die tonight” if his demands were not met.

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Abhishek Bhilwaria, BhilwariaMF, AMFI registered MFD told ETMutualFunds, “Navigating today’s gold and silver prices Rs 14,984 per gram for 24K gold and ₹260 per gram for silver requires a strategic rather than a reactive approach. Given the current market volatility, the most effective move for investors is to leverage a Systematic Investment Plan (SIP) through Digital Gold, ETFs, or Silver Mutual Funds.”

“Rather than committing a large lump sum at these levels, you should aim for a balanced asset allocation where precious metals comprise 10%–20% of your total portfolio, treating gold as a long-term hedge for stability and silver as a tactical play for growth,” Bhilwaria further added.

(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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