Gold and Silver ETFs Rally as Domestic Prices Rebound Despite Firm Dollar<\/p>\n
Gold and silver exchange traded funds (ETFs) witnessed strong gains on February 19, rising up to 4 percent as domestic bullion prices rebounded sharply. The rally came even as global commodity sentiment remained muted due to a firm US dollar and ahead of key US inflation data that could influence the Federal Reserve\u2019s interest rate trajectory.<\/p>\n
Gold futures (April expiry) on the MCX climbed to \u20b91,56,133 per kilogram during morning trade, while silver futures (March expiry) rose nearly 1 percent to \u20b92,45,870 per kilogram.<\/p>\n
The move surprised traders given that the US dollar hovered near a more-than-one-week high, typically a negative factor for gold and silver prices since bullion becomes more expensive for holders of other currencies.<\/p>\n
The key trigger behind the rise in domestic gold and silver prices was the removal of additional margins by the Multi Commodity Exchange of India<\/span><\/span> and the National Stock Exchange of India<\/span><\/span>.<\/p>\n Earlier this month, MCX had imposed:<\/p>\n 3% additional margin on gold futures<\/p>\n<\/li>\n 7% additional margin on silver futures<\/p>\n<\/li>\n<\/ul>\n These measures were introduced as risk-management steps after a record rally in precious metals earlier this year. However, following a recent sharp correction, the exchanges withdrew these additional margins, effective immediately.<\/p>\n The removal improved liquidity conditions and reduced trading costs, encouraging fresh participation in bullion contracts.<\/p>\n Also Read : Nifty 50 Ends Higher as Power and Metal Stocks Gain \u2014 Why IT Weighed on Sentiment<\/a><\/p>\n Among silver ETFs, Groww Silver ETF<\/span><\/span> surged more than 4 percent. Other silver ETFs such as UTI Silver ETF<\/span><\/span>, Axis Silver ETF<\/span><\/span>, HDFC Silver ETF<\/span><\/span>, and Motilal Oswal Silver ETF<\/span><\/span> gained close to 4 percent in early trade.<\/p>\n In the gold ETF space, Motilal Oswal Gold ETF<\/span><\/span> and Groww Gold ETF<\/span><\/span> rose over 2 percent, while SBI Gold ETF<\/span><\/span> and ICICI Prudential Gold ETF<\/span><\/span> added nearly 2 percent.<\/p>\n The rally indicates renewed investor interest in safe-haven assets amid volatility in equities and global macro uncertainty.<\/p>\n Today\u2019s surge in gold and silver ETFs was primarily driven by:<\/p>\n Withdrawal of additional margins by MCX and NSE<\/p>\n<\/li>\n Lower trading costs improving liquidity<\/p>\n<\/li>\n Tactical buying after recent correction<\/p>\n<\/li>\n Persistent geopolitical uncertainty<\/p>\n<\/li>\n<\/ul>\n While global bullion sentiment remained cautious due to a firm dollar, domestic triggers outweighed international headwinds, prompting traders to re-enter positions.<\/p>\n Despite the rebound, analysts caution that the broader technical structure for gold still shows weakness.<\/p>\n Jateen Trivedi, VP Research Analyst \u2013 Commodity and Currency at LKP Securities, said:<\/p>\n \u201cA decisive break above $5,000 on CME would be required to negate the short-term weakness and revive bullish momentum. Fed\u2019s meeting minutes and China\u2019s market reopening are likely to inject additional volatility. Immediate support is near \u20b91,48,000, while resistance remains around \u20b91,55,000.\u201d<\/p>\n<\/blockquote>\n Meanwhile, Aamir Makda, Commodity & Currency Analyst at Choice Broking, highlighted the impact of the week-long closure of the Shanghai Gold Exchange<\/span><\/span> due to Lunar New Year.<\/p>\n He explained:<\/p>\n \u201cAs the world\u2019s largest physical buyers go offline, trading volumes thin out, often resulting in exaggerated price volatility and wider bid-ask spreads. Historically, this period triggers a price correction.\u201d<\/p>\n<\/blockquote>\n Makda also warned that silver is particularly vulnerable during this phase because Chinese industrial production slows sharply during festivities.<\/p>\n For investors, the surge in gold and silver ETFs offers both opportunity and caution.<\/p>\n Positive factors:<\/p>\n Safe-haven demand amid geopolitical risks<\/p>\n<\/li>\n Reduced trading costs after margin withdrawal<\/p>\n<\/li>\n Portfolio hedge against equity volatility<\/p>\n<\/li>\n<\/ul>\n Risks to consider:<\/p>\n Strong dollar pressure<\/p>\n<\/li>\n Fed rate-cut uncertainty<\/p>\n<\/li>\n Liquidity vacuum due to China holidays<\/p>\n<\/li>\n Technical resistance levels near \u20b91,55,000<\/p>\n<\/li>\n<\/ul>\n Silver, being more volatile and industrial-demand driven, may experience sharper swings compared to gold.<\/p>\n Markets are closely watching:<\/p>\n US inflation data<\/p>\n<\/li>\n Federal Reserve policy signals<\/p>\n<\/li>\n Developments in US\u2013Iran tensions<\/p>\n<\/li>\n Reopening of Chinese bullion markets<\/p>\n<\/li>\n<\/ul>\n If gold breaks above $5,000 decisively, it could revive bullish momentum. However, failure to sustain above resistance may lead to consolidation or renewed correction.<\/p>\n While equity markets remain volatile, precious metals continue to attract defensive allocations. Analysts recommend:<\/p>\n Avoid aggressive leverage in bullion<\/p>\n<\/li>\n Adopt phased accumulation strategy<\/p>\n<\/li>\n Monitor support at \u20b91,48,000<\/p>\n<\/li>\n Watch resistance near \u20b91,55,000<\/p>\n<\/li>\n<\/ul>\n The removal of extra margins has improved trading conditions, but volatility risks remain elevated.<\/p>\n For now, gold and silver ETFs have regained attention \u2014 but the sustainability of this rally will depend on global macro cues and technical breakouts.<\/p>\n Gold and Silver ETFs Rally as Domestic Prices Rebound Despite Firm Dollar Gold and silver exchange traded funds (ETFs) witnessed strong gains on February 19, rising up to 4 percent as domestic bullion prices rebounded sharply. The rally came even as global commodity sentiment remained muted due to a firm US dollar and ahead of […]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-21742","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/21742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=21742"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/21742\/revisions"}],"predecessor-version":[{"id":21746,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/21742\/revisions\/21746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/21745"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=21742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=21742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=21742"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=21742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Silver ETFs Lead Gains; Gold ETFs Follow<\/h2>\n
Here\u2019s What Happened Today and Why Traders Reacted<\/h2>\n
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Experts Warn of Volatility Amid US Data and China Holidays<\/h2>\n
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What Impact Could This Have on Investor Portfolios?<\/h2>\n
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What Could Happen in the Coming Days?<\/h2>\n
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Market Impact and Investor Strategy<\/h2>\n
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