Gold And Silver ETFs Rise Up To 2.7% As Safe-Haven Demand Strengthens

Gold and silver ETFs have moved up on March 30, as investors are looking for safe haven assets amidst tensions in West Asia, whereas the MCX futures have moved up as well.

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Gold ETFs recorded gains of up to 2.19% during the session. ICICI Prudential Gold ETF rose 2.19%, while Groww Gold ETF gained 2.10% and Axis Gold ETF increased 2%. Union Gold ETF climbed 1.94%, DSP Gold ETF added 1.95%, and Nippon India ETF Gold BeES advanced 1.91%. SBI Gold Exchange Traded Scheme and Invesco India Gold ETF also moved higher by around 1.91% and 1.84%, respectively, based on market data.

Silver ETFs See Stronger Gains

Silver ETFs outperformed gold ETFs during the session, with gains extending up to 2.7%. UTI Silver ETF rose 2.7%, while Motilal Oswal Silver ETF gained 2.02% and Groww Silver ETF advanced 2.10%. Zerodha Silver ETF increased 2.15%, and 360 ONE Silver ETF rose 1.84%.

Other silver-linked funds also registered gains, with HDFC Silver ETF rising 1.85%, DSP Silver ETF adding 1.94%, Axis Silver ETF gaining 1.67%, Aditya Birla Sun Life Silver ETF increasing 1.56%, and ICICI Prudential Silver ETF advancing 1.57%, according to exchange data.

MCX Gold And Silver Futures Edge Higher

Futures prices for gold and silver on the Multi-Commodity Exchange (MCX) traded with marginal gains on March 30. Gold futures for May delivery were quoted at ₹1,45,980 per 10 grams, up 0.03%, while silver futures for May delivery rose 0.35% to ₹2,28,750 per kilogram, based on MCX data.

The movement in futures prices followed continued demand for bullion amid global uncertainty and rising geopolitical risks, according to exchange data.

Geopolitical Developments Drive Demand

The rise in bullion-linked assets came at a time when tensions in the West Asian region continue to persist. The region is in the fifth week of the crisis, with March 30 marking the latest date. The crisis in the region has been responsible for the fluctuations in the global stock markets and the demand for stable financial instruments, according to Reuters.

Global cues remained mixed, with equity markets weakening while commodity prices, including precious metals, rose during the session.

Broader Market Context

The rise in ETF prices is due to the asset allocation by investors in gold and silver during uncertain times. According to data provided by the exchanges, gold and silver have seen consistent investment inflows during times of geopolitical tensions.

The fluctuations in the MCX futures and ETF prices on March 30 reflect the interest of investors in bullion-linked instruments.