Silver ETFs Drop Up To 6%, Hindustan Zinc Falls As Global Prices Decline

Silver exchange-traded funds (ETFs) and shares of Hindustan Zinc declined on March 19 after global silver prices fell over 4%, pressured by a stronger dollar and signals from the U.S. Federal Reserve indicating limited scope for near-term rate cuts.

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At 12:45 pm, the Edelweiss Silver ETF was off by 6.37%, while the Axis Silver ETF had dipped 6.2%. Kotak Silver ETF, HDFC Silver ETF, and Nippon India Silver ETF also declined around 6% each during the session. Shares of Hindustan Zinc, India’s largest silver producer, fell 4.5% to ₹513.35 apiece.

Precious Metals Under Pressure

According to Reuters, spot silver prices dropped 4.3% to $72.14 per ounce, reflecting broad weakness across precious metals. Spot gold declined 1.1% to $4,764.27 per ounce as of 0649 GMT, marking its lowest level since February 6.

U.S. gold futures for April delivery also fell 2.6% to $4,770. Other metals followed a similar trend, with platinum falling 2.1% to $1,981.48 and palladium declining 1% to $1,461.

Gold ETFs also recorded losses, with funds from Aditya Birla Sun Life Mutual Fund, Tata Mutual Fund, Axis Mutual Fund, and DSP Mutual Fund declining between 2.5% and 3% during the session.

Impact Of Dollar Strength And Fed Signals

The drop in precious metal prices is occurring alongside a robust dollar and shifting anticipations regarding U.S. monetary policy. According to market data cited by Reuters, spot gold has fallen more than 9% since February 28, when tensions in West Asia escalated following military developments involving the U.S. and Israel.

Higher inflation expectations and reduced likelihood of near-term rate cuts have weighed on bullion prices, as per statements from YES Securities.

Market Movement Reflects Global Trends

This decline in silver ETF and shares of Hindustan Zinc is in line with the fall in silver prices across the world. The domestic markets closely follow global markets and prices.

The movement in bullion-linked stocks on March 19 is in line with changes in price trends and currency value.