The Bombay Stock Exchange has modified the reference price calculation for gold and silver exchange-traded funds effective only February 1, 2026, shifting to T-1 net asset value as the basis for daily price bands instead of previous day’s closing prices.
The change, announced through Notice, comes as precious metals witnessed extreme volatility with gold futures plunging approximately 16 per cent from recent peaks above ₹1,80,000 to around ₹1,49,500, while silver experienced a sharper correction of nearly 40 per cent from highs near ₹4,20,000 to ₹2,91,000 levels in late January.
Under the revised framework, the prescribed price band of plus or minus 20 per cent will now be applied to the previous day’s NAV published by respective mutual funds and asset management companies, rather than market closing prices.
BSE’s Head of Trading Operations Ketan Jantre issued the directive to trading members, citing volatility in underlying gold and silver prices as the primary reason for the adjustment.
The violent correction followed President Trump’s nomination of Kevin Warsh as the next US Federal Reserve Chair on January 30. Warsh, known for his hawkish stance on inflation, triggered a rapid repricing across markets as the dollar strengthened and real yields rose, leading to aggressive unwinding of leveraged positions in precious metals.
Despite the sharp selloff, market analysts maintain that the secular bullish structure remains intact, supported by central bank gold accumulation and silver’s structural supply deficits driven by industrial demand from green energy, electric vehicles, and electronics sectors. The correction is being characterized as a leverage flush rather than a fundamental trend reversal.
The BSE’s technical adjustment aims to provide more accurate price discovery for ETF trading by aligning daily bands with fund valuations rather than potentially distorted market prices during periods of extreme volatility.
Published on February 1, 2026
