Top losers, gainers, reasons you should know
Gold and silver ETFs experienced a sharp decline following hawkish comments from US Federal Reserve Chair Kevin Warsh. The sell-off was driven by rising bond yields and expectations of interest rate hikes, which reduce the appeal of non-yielding precious metals.
Why it matters
Investors use precious metals as a hedge against inflation, so shifts in Fed policy directly impact global investment portfolios and market stability.
Gold and silver exchange-traded funds (ETFs) came under sharp selling pressure on August 31, falling by as much as 4% as weakness in precious-metal prices spilled over into domestic markets. Hawkish comments from US Federal Reserve Chair Kevin Warsh strengthened expectations of an interest-rate hike, pushing bond yields higher and reducing the appeal of non-yielding assets such as gold and silver.The decline came amid a combination of aggressive profit-taking, weak global cues, rising US bond yields and escalating tensions between the US and Iran, which have pushed energy prices higher and raised concerns about a fresh inflation flare-up.Silver ETFs saw the steepest decline in morning trade. SBI Silver ETF fell 4.05% to ₹226.55, while Nippon India Silver ETF, or Silver BeES, dropped 4.06% to ₹221.07. Tata Silver ETF declined 3.98% to ₹22.44, while ICICI Prudential Silver ETF slipped 3.87% to ₹231.21.Gold ETFs were also under pressure.
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