Gold, Silver ETFs Fall Sharply as Bullion Prices Slide; SBI Silver ETF Down Nearly 4%

Gold and silver ETFs witnessed heavy selling pressure on Monday, September 28, due to the decline in the prices of the precious metals, which also weighed heavily on domestic ETFs. Silver ETFs suffered most from the sell-off, with gold ETFs also registering losses. 

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SBI Silver ETF lost 3.99%, posting the highest losses among the major silver ETFs discussed in the report. Nippon India Silver ETF was down 3.57%, while Tata Silver Exchange Traded Fund registered losses of 3.51%, with ICICI Prudential Silver ETF down 3.44%. 

ETFs that track gold witnessed declines too. The losses in ICICI Prudential Gold ETF were 2.92%, those in SBI Gold ETF were 2.85%, and those in Nippon India ETF Gold BeES were 2.80%. Tata Gold Exchange Traded Fund lost 2.67%. 

The fall in the price of the precious metal is attributed to the correction in gold prices outside the country. Gold spot was down 2.1% to $4,198.10 per ounce, and was headed for its biggest one-day drop since September 1. Gold futures in the US were also down 2.1% to $4,231. 

Silver faced an even worse fate, with its spot prices down 3.4% to $62.08 an ounce. 

The pressure was equally visible in India’s commodity market. MCX silver futures for September 2026 delivery fell by ₹6,661 to ₹2,28,035 per kg. October 2026 gold futures declined by ₹3,214 to ₹1,47,667 per 10 grams. 

A firm US dollar and rising Treasury yields added to the pressure on precious metals. A stronger dollar makes bullion more expensive for buyers holding other currencies. 

Crude oil prices were another factor being watched by the market. Brent crude rebounded after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. The continuing tensions in the Middle East kept concerns around energy prices and inflation in focus. 

Expectations surrounding US interest rates also weighed on bullion. The CME Group’s FedWatch Tool showed traders assigning a 70.3% probability to another Federal Reserve rate increase in October. The US central bank had raised rates by 25 basis points earlier in September and indicated that further increases could follow. 

Investors are now awaiting a series of US economic releases scheduled during the week, including job openings, the ADP employment report, Personal Consumption Expenditures inflation data and nonfarm payrolls. 

Another factor that has been mentioned in the report is booking profits after such a stellar performance by precious metals. The price of gold has gone up by over 53%, while the price of silver has surged by more than 100% over the past year. 

As far as gold and silver ETFs are concerned, the fall on Monday came amid the combined effect of all these factors mentioned above.