Silver and gold ETFs drop amid US Federal Reserve worries
Silver and gold ETFs took a hit on June 25, with silver funds falling almost 4% and gold slipping about 2%.
This sudden drop is tied to big swings in bullion prices and worries about the US Federal Reserve possibly raising interest rates soon.
Nippon India SilverBeES led slide
Nippon India Silver ETF (SilverBeES) led the slide, down nearly 4%, with SBI, ICICI, and Tata's silver funds also tumbling.
Gold ETFs saw smaller losses: ICICI Prudential Gold ETF dropped just under 2%.
On MCX, gold futures dipped slightly while silver futures fell sharply before staging a swift recovery within minutes.
Spot gold below $4,000 pressures ETFs
Spot gold prices worldwide kept falling after breaking below the $4,000-per-ounce mark.
A strong US dollar and expectations of more rate hikes are making bullion less attractive for investors, which is pushing ETF prices lower.