West Asia conflict: Gold, silver ETFs rally as dollar slips, oil cools; expert advises staggered buying in bullion
Gold and silver ETFs saw fresh buying on March 10 as bullion prices rebounded globally after the US dollar weakened and crude oil cooled, easing pressure from the West Asia conflict. Silver ETFs led the gains, while gold funds moved higher on renewed safe-haven demand. Experts say volatility may remain high and advise staggered buying in bullion-linked funds.
- Mar 11, 2026,
- Updated Mar 11, 2026 7:40 AM IST
Gold and silver exchange-traded funds (ETFs) saw fresh buying on March 10, 2026, tracking gains in global bullion prices after the US dollar weakened and crude oil prices cooled, easing some of the pressure created by the ongoing West Asia conflict. Silver-linked ETFs led the rally, while gold ETFs posted moderate gains as investors rotated back to precious metals amid persistent geopolitical uncertainty.
Precious metals remained firm in late trade on March 10 (17:36 IST), tracking gains in global markets. On MCX, gold rose to ₹1,61,693 per 10 grams, up ₹1,394 (0.87%) from the previous close, while silver climbed to ₹2,74,808 per kg, gaining ₹7,648 (2.86%). In international markets, Comex gold was at $5,181.70 per ounce, up 1.53%, and Comex silver jumped 4.68% to $88.47 per ounce, indicating strong buying interest in bullion.
The US dollar slipped about 0.3% after safe-haven demand softened on expectations that the Iran-US-Israel conflict may remain contained. Comments from US President Donald Trump suggesting that recent military action was “very complete” helped calm fears of a wider escalation. A weaker dollar typically supports gold and silver because both metals are priced in the US currency.
ETFs surge
In domestic markets, silver ETFs were among the top performers in morning trade. DSP Silver ETF and Axis Silver ETF rose nearly 4%, while HDFC Silver ETF, Mirae Asset Silver ETF and Tata Silver ETF gained more than 3%. Gold ETFs also traded higher, though with smaller moves. LIC MF Gold ETF rose about 1.16%, while Union Gold ETF, Axis Gold ETF, HDFC Gold ETF and Tata Gold ETF gained between 0.5% and 0.9%.
In global markets, spot gold edged higher while silver outperformed, supported by renewed safe-haven demand and softer currency movements. On the MCX, gold futures traded near ₹1.62 lakh per 10 grams, while silver futures surged sharply, reflecting stronger momentum in the white metal.
NS Ramaswamy, Head of Commodity & CRM at Ventura, said bullion ETFs are currently witnessing sharp swings because of conflicting macro signals. “Gold and Silver ETFs are experiencing high volatility during the current Iran-US-Israel conflict. Initially prices surged on safe-haven demand, but pullbacks followed due to a stronger US dollar and shifting interest-rate expectations. The recent correction was largely a catch-up adjustment to global bullion prices after sell-offs,” he said.
He noted that metals are facing opposing forces. “Gold and silver are caught between a rock and a hard place. Middle East tensions are supporting safe-haven flows, while rising US bond yields and a firm dollar are acting as headwinds. Gold has managed to hold support near $5000 an ounce despite elevated yields, which shows underlying strength,” Ramaswamy said.
He added that rising oil prices had earlier triggered inflation fears, complicating the outlook for interest rates.
“Surging oil prices fuel stagflation concerns, which supports bullion, but higher inflation makes it harder for the Federal Reserve to cut rates. That keeps volatility high, and sharp rallies are often followed by pullbacks,” he said.
Back to bullion?
According to Ramaswamy, recent trading shows investors moving back to bullion as energy prices cool. “Investors have rotated back to the bullion pack while energy markets are seeing a pullback. Gold is benefiting from macro uncertainty, inflation expectations and portfolio hedging, while silver is amplifying the move because it has both precious-metal and industrial demand characteristics,” he said.
He advised investors to remain cautious despite the rally. “Silver and gold ETF investors should stagger purchases, buy on dips and keep allocation around 10–15% of the portfolio. Gold ETFs may offer steadier returns, while silver ETFs can deliver sharper gains but with higher volatility,” Ramaswamy said.
He added that long-term fundamentals remain supportive, with continued central-bank buying, geopolitical risks and high global debt likely to keep the broader outlook for gold positive.
Slump in gold, silver ETFs
Investor interest in gold and silver exchange-traded funds (ETFs) moderated in February 2026 after a strong surge in January. Gold ETFs recorded net inflows of ₹5,254 crore, sharply lower than ₹24,039 crore in the previous month, while silver ETFs saw a net outflow of ₹826 crore, the first in more than two years. Overall inflows into passive schemes, including ETFs, index funds and FoFs, fell 65% month-on-month to ₹13,879 crore.
The decline followed January’s unusually high allocations driven by portfolio rebalancing and profit-booking. Silver ETFs were hit harder due to sharp price volatility after a late-January correction, which triggered higher redemptions. Despite the slowdown, inflows remain higher than historical averages, as investors continue to use gold and silver ETFs for liquidity, transparency and as a hedge against market and geopolitical uncertainty.
Gold and silver exchange-traded funds (ETFs) saw fresh buying on March 10, 2026, tracking gains in global bullion prices after the US dollar weakened and crude oil prices cooled, easing some of the pressure created by the ongoing West Asia conflict. Silver-linked ETFs led the rally, while gold ETFs posted moderate gains as investors rotated back to precious metals amid persistent geopolitical uncertainty.
Precious metals remained firm in late trade on March 10 (17:36 IST), tracking gains in global markets. On MCX, gold rose to ₹1,61,693 per 10 grams, up ₹1,394 (0.87%) from the previous close, while silver climbed to ₹2,74,808 per kg, gaining ₹7,648 (2.86%). In international markets, Comex gold was at $5,181.70 per ounce, up 1.53%, and Comex silver jumped 4.68% to $88.47 per ounce, indicating strong buying interest in bullion.
The US dollar slipped about 0.3% after safe-haven demand softened on expectations that the Iran-US-Israel conflict may remain contained. Comments from US President Donald Trump suggesting that recent military action was “very complete” helped calm fears of a wider escalation. A weaker dollar typically supports gold and silver because both metals are priced in the US currency.
ETFs surge
In domestic markets, silver ETFs were among the top performers in morning trade. DSP Silver ETF and Axis Silver ETF rose nearly 4%, while HDFC Silver ETF, Mirae Asset Silver ETF and Tata Silver ETF gained more than 3%. Gold ETFs also traded higher, though with smaller moves. LIC MF Gold ETF rose about 1.16%, while Union Gold ETF, Axis Gold ETF, HDFC Gold ETF and Tata Gold ETF gained between 0.5% and 0.9%.
In global markets, spot gold edged higher while silver outperformed, supported by renewed safe-haven demand and softer currency movements. On the MCX, gold futures traded near ₹1.62 lakh per 10 grams, while silver futures surged sharply, reflecting stronger momentum in the white metal.
NS Ramaswamy, Head of Commodity & CRM at Ventura, said bullion ETFs are currently witnessing sharp swings because of conflicting macro signals. “Gold and Silver ETFs are experiencing high volatility during the current Iran-US-Israel conflict. Initially prices surged on safe-haven demand, but pullbacks followed due to a stronger US dollar and shifting interest-rate expectations. The recent correction was largely a catch-up adjustment to global bullion prices after sell-offs,” he said.
He noted that metals are facing opposing forces. “Gold and silver are caught between a rock and a hard place. Middle East tensions are supporting safe-haven flows, while rising US bond yields and a firm dollar are acting as headwinds. Gold has managed to hold support near $5000 an ounce despite elevated yields, which shows underlying strength,” Ramaswamy said.
He added that rising oil prices had earlier triggered inflation fears, complicating the outlook for interest rates.
“Surging oil prices fuel stagflation concerns, which supports bullion, but higher inflation makes it harder for the Federal Reserve to cut rates. That keeps volatility high, and sharp rallies are often followed by pullbacks,” he said.
Back to bullion?
According to Ramaswamy, recent trading shows investors moving back to bullion as energy prices cool. “Investors have rotated back to the bullion pack while energy markets are seeing a pullback. Gold is benefiting from macro uncertainty, inflation expectations and portfolio hedging, while silver is amplifying the move because it has both precious-metal and industrial demand characteristics,” he said.
He advised investors to remain cautious despite the rally. “Silver and gold ETF investors should stagger purchases, buy on dips and keep allocation around 10–15% of the portfolio. Gold ETFs may offer steadier returns, while silver ETFs can deliver sharper gains but with higher volatility,” Ramaswamy said.
He added that long-term fundamentals remain supportive, with continued central-bank buying, geopolitical risks and high global debt likely to keep the broader outlook for gold positive.
Slump in gold, silver ETFs
Investor interest in gold and silver exchange-traded funds (ETFs) moderated in February 2026 after a strong surge in January. Gold ETFs recorded net inflows of ₹5,254 crore, sharply lower than ₹24,039 crore in the previous month, while silver ETFs saw a net outflow of ₹826 crore, the first in more than two years. Overall inflows into passive schemes, including ETFs, index funds and FoFs, fell 65% month-on-month to ₹13,879 crore.
The decline followed January’s unusually high allocations driven by portfolio rebalancing and profit-booking. Silver ETFs were hit harder due to sharp price volatility after a late-January correction, which triggered higher redemptions. Despite the slowdown, inflows remain higher than historical averages, as investors continue to use gold and silver ETFs for liquidity, transparency and as a hedge against market and geopolitical uncertainty.