Gold, silver ETFs up 11% today: Should you invest?
What's the story
Gold and silver-based exchange-traded funds (ETFs) witnessed a major rally today. The surge was mainly due to a weaker dollar and falling oil prices, which eased inflation concerns. Some silver ETFs even gained as much as 11%. The rally is seen as an attractive opportunity for long-term investors amid ongoing geopolitical uncertainties and inflation-hedging fundamentals.
Market performance
Leading ETFs witness significant gains
Leading ETFs such as Nippon India Silver ETF, HDFC Silver ETF, and ICICI Prudential Silver ETF witnessed gains of up to 11% today. SBI Silver ETF and Kotak Silver ETF also saw a rise of 5% each. A total of 25 gold ETFs rallied between 3% to 5%, with ICICI Prudential Gold ETF leading the pack with a gain of around 5%.
Investment advice
Long-term investors can accumulate gold, silver now
Anup Bhaiya, founder of Money Honey Wealth Services, said to ETMutualFunds that gold and silver have stabilized after a sharp correction phase. He said these levels provide an attractive accumulation window for long-term investors, backed by safe-haven demand, geopolitical uncertainties, and inflation-hedging fundamentals. Despite a steep selloff over the earlier two sessions, commodity-based ETFs rebounded up to 7% yesterday after crashing up to 20% on Monday.
Global trends
Gold surges over 2% in international market
In the international market, gold prices rose over 2%. Spot gold rose 2.5% to $4,587.09 per ounce, while US gold futures for April delivery surged 4.2% to $4,586.10. A weaker dollar made dollar-denominated bullion cheaper for buyers in other currencies. Silver also witnessed big gains with spot prices rising by 3.6% to $73.78 per ounce.