Silver exchange-traded funds (ETFs) advanced on Tuesday, tracking gains in underlying precious metal prices, while tensions in West Asia entered a third week of escalation.
HDFC Silver ETF rose 5.3 per cent, Kotak Silver
ETF gained 5.4 per cent, Nippon India Silver ETF and ICICI Prudential Silver ETF both climbed nearly 4 per cent, SBI Silver ETF advanced 5.2 per cent, and Axis Silver ETF jumped 6.1 per cent.
The ETFs were taking cues from gains in silver prices. Multi-Commodity Exchange (MCX) May 5 contracts for silver gained nearly 1 per cent to ₹2,62,650 per 1 kg. MCX gold April 3 futures are up 0.55 per cent to ₹1,56,611 per 10 grams on Tuesday.
Although the broader structure remains bullish, the recent correction has impacted short-term momentum, Ponmudi R, chief executive officer of Enrich Money, said. Key support is placed at ₹2,47,000-₹2,50,000, and holding above this zone is crucial to maintain the bullish structure. “A sustained move above ₹2,65,000 could trigger an upside move toward ₹2,75,000-₹2,80,000, while a breakdown below support may lead to increased selling pressure.”
Looking ahead, precious metals may remain soft in the near term, with sharp moves in either direction unlikely in the absence of a significant shift in the geopolitical or policy outlook, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said. “Traders eye the upcoming FOMC policy meeting for updated economic projections for clues on the policy outlook as the Fed is widely expected to maintain the status quo on rates.”
Gold ETFs traded mixed, with Aditya Birla Sun Life Gold
ETF rising 3 per cent, Axis Gold ETF and Tata Gold ETF rising 1 per cent each. Nippon India Gold ETF gained 1 per cent, while LIC MF Gold ETF rose 0.8 per cent and DSP Gold ETF added nearly 1.5 per cent.
The US dollar index gained by 0.4 per cent to 100.1 as the conflict in West Asia entered the third week. European countries said they were discussing ways to help reopen the Strait of Hormuz, while several rejected US President Donald Trump’s calls to send warships. Trump also said on Monday that he does not believe Israel would use a nuclear weapon in its war with Iran, CNN reported.
==========
(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)
