Silver exchange-traded funds witnessed a sharp sell-off on Friday, January 30, tracking a steep correction in domestic and global silver prices. The decline came after silver prices hit record highs earlier this week, triggering aggressive profit booking across futures and ETF segments.
During Friday’s session, Nippon India Silver ETF emerged as the top loser among peers, sliding 7.57% to Rs 325.27. Aditya BSL Silver ETF declined 7.33% to Rs 340.20, while ICICI Prudential Silver ETF fell 7.23% to Rs 340.70. Zerodha Silver ETF (Silvercase) also saw heavy selling pressure, dropping 7.14% to Rs 35.10.
The sharp decline in silver ETFs mirrored weakness in the underlying commodity. Silver futures on the Multi Commodity Exchange fell over 5% to around Rs 3.78 lakh per kg, extending the correction from recent record highs. On the global front, the COMEX silver continuous contract slipped 3.86% to $110.01, as investors booked profits after an exceptionally strong rally.
Internationally, silver prices retreated after hovering near all-time highs earlier in the week. Despite Friday’s fall, silver remains up more than 50% in January, marking its strongest monthly performance on record. However, the near-vertical rally prompted traders to lock in gains, leading to sharp short-term volatility.
A modest rebound in the US dollar added further pressure on precious metals. Additionally, elevated premiums in Indian silver prices compared with global benchmarks began to compress as international prices cooled, amplifying the downside move in domestic ETFs.
Overall, Friday’s decline in silver ETFs reflects profit booking, dollar strength, and premium compression following an overheated rally, with volatility remaining elevated in the near term.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock and commodity market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
