Gold and silver exchange-traded funds (ETFs) plunged sharply on January 22 after a record rally, with silver ETFs falling up to 21 percent and gold ETFs dropping nearly 12 percent. Analysts remain divided, advising cautious accumulation for long-term investors while warning against aggressive short-term bets amid easing tariff concerns.
After weeks of surging prices driven by geopolitical tensions, gold and silver ETFs witnessed a steep correction on January 22. The fall was triggered by easing tariff concerns following US President Donald Trump’s softened stance on European tariffs and Greenland-related disputes.
Key Highlights
-
Silver ETFs, including Tata Silver ETF, dropped as much as 21 percent intraday
-
Birla Sun Life Gold ETF fell nearly 12 percent before partial recovery
-
Analysts caution against aggressive short-term buying, suggesting gradual accumulation instead
-
Precious metals continue to hold importance as portfolio hedges amid global uncertainties
-
Market experts highlight that corrections are natural after sharp rallies, urging investors to focus on long-term fundamentals rather than short-term volatility
While the crash has rattled investors, experts emphasize patience and measured exposure to precious metals ETFs, given their enduring role as safe-haven assets.
Sources: Economic Times, News18, Hindustan Times