Gold, silver ETFs drop up to 10%: What's the reason
Gold and silver ETFs took a hit—dropping up to 10%—after surprisingly strong US jobs numbers made a Fed rate cut less likely.
This pushed the dollar higher, which means gold and silver just got pricier for anyone buying outside the US.
Kotak Silver ETF fell 10%
Kotak Silver ETF fell 10%, Tata Gold ETF dropped 6%, with gold's spot price down 2.3% to $4,966.83/oz and silver nearly 9% lower at $76.76/oz.
Still, investors poured ₹9,463 crore into silver ETFs, showing people aren't backing out just yet.
A look at spot prices
A stronger dollar makes gold and silver more expensive globally, so demand drops—as it becomes more expensive for holders of other currencies.
Silver's been extra volatile too, with its ETFs experiencing large swings despite big inflows in January.
Experts say watch for support around $65/oz for silver and $4,770/oz for gold if things keep sliding.