Gold, Silver ETFs Slide As MCX Prices Tumble; Key Support Levels In Focus

Gold and silver exchange-traded funds (ETFs) came under pressure on Friday as a fall in precious metal prices triggered broad-based declines across commodity-linked funds. The weakness marked the third consecutive weekly setback for bullion, with domestic futures on the Multi Commodity Exchange (MCX) extending losses.

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Gold August futures on the MCX were trading lower by around ₹2,750, or nearly 2%, at about ₹1.46 lakh per 10 grams. Silver July contracts dropped by roughly ₹7,000 per kg, or close to 3%, to around ₹2.3 lakh per kg.
In the ETF segment, silver funds registered steeper declines. Nippon India Silver ETF fell 5.41% to ₹217.54, while ICICI Prudential Silver ETF declined 5.50% to ₹227.15. HDFC Silver ETF dropped 5.49% to ₹217.27, SBI Silver ETF slipped 5.40% to ₹222.66 and Tata Silver ETF lost 5.36% to ₹22.09.

Gold ETFs also traded in negative territory. Nippon India Gold ETF fell 2.64% to ₹118.89, ICICI Prudential Gold ETF declined 2.77% to ₹122.89, SBI Gold ETF shed 2.72% to ₹122.53, HDFC Gold ETF dropped 2.59% to ₹122.83 and Kotak Gold ETF slipped 2.88% to ₹119.60.

Dollar Strength Weighs On Bullion

According to Reuters, spot gold declined 2.1% to $4,121.95 per ounce at 0508 GMT, touching its lowest level since June 11. The metal has fallen 3.8% this week. Reuters reported that a stronger U.S. dollar, which climbed to a one-year high, made bullion more expensive for holders of other currencies. Trading activity remained subdued as markets in mainland China and Hong Kong were shut for the Dragon Boat Festival.

Technical Levels To Watch

Kaveri More, Commodity Analyst at Choice Broking, said MCX gold prices have corrected by more than 4% over the past two sessions, indicating weakness in the near term. She said support for gold is placed in the ₹1,44,700-₹1,42,700 range, while resistance is seen between ₹1,49,300 and ₹1,52,000. In the international market, she identified the $4,020-$3,885 zone on COMEX as a major support area.

On silver, More told Choice Broking that the metal has remained under pressure for the fourth straight week. She placed support at ₹2,23,100-₹2,19,600 and resistance in the ₹2,42,200-₹2,46,800 range. Despite the recent decline, she noted that silver has shown comparatively better resilience than gold.

More also said MCX crude oil opened higher by around 1.3% on Friday. She placed support at ₹7,020-₹6,890 and resistance at ₹7,200-₹7,320, while noting that the broader trend in crude oil remains weak.

The recent correction in precious metals has weighed on commodity-focused ETFs, with investors closely monitoring price movements and technical support zones for signs of stability.