Silver, gold ETFs: Nippon, Zerodha, HDFC, SBI silver ETFs plunge 20% each; gold ETFs tank up to 12%

Union Budget 2026: Silver and gold exchange-traded funds (ETFs) plunged up to 17 per cent in Sunday's trade, thanks to a sharp correction in gold and silver futures on MCX, ahead of Budget 2026. Gold and silver prices have been falling as the US President Donald Trump nominated Kevin Warsh as the next US Federal Reserve Chair by President Trump, who is known for his hawkish stance on inflation control and emphasis on Fed independence.

The move has led to rapid macro re-pricing, said Ponmudi R, CEO of Enrich Money. The dollar strengthened, real yields rose, and leveraged positions in gold and silver viewed as overextended debasement hedges unwound swiftly. 

"This resulted in violent liquidation, erasing billions in market value and flushing out weak hands in a classic euphoria-to-exhaustion phase rather than signaling a structural bear market reversal," Ponmudi said in a weekly noted. 

At 9.49 am, Aditya Birla Sun Life Silver ETF was down 20 per cent at Rs 263.22 against its indicative NAV (i-Nav) of Rs 72.48. Similarly, Nippon-India-Silver-ETF plunged 20 per cent to Rs 252.49, falling below its i-NAV of 305.93. Zerodha Silver ETF fell 19.98 per cent to Rs 26.80. NAVs of HDFC Silver ETF and SBI Silver ETF also fell 20 per cent each. 

Similarly, gold ETFs such as Invesco India Gold Exchange Traded Fund, HDFC Gold Exchange Traded Fund, 
ICICI Prudential Gold ETF and NIPPON INDIA ETF GOLD BEES, among others, fell up to 12 per cent.

In the case of MCX Silver, analysts said momentum indicators have flipped from extreme overbought to oversold within a very short span on technical charts, highlighting structural instability rather than healthy correction. "The Rs 2,60,000–2,55,000 zone is now a critical demand area; failure to hold may open deeper corrective risk. Any pullback toward Rs 3,00,000–3,10,000 is expected to attract selling pressure. The trend remains bearish-biased in the short term, with volatility expected to stay elevated," Ponmudi said.

For gold, while the broader long-term trend was bullish, the recent move clearly reflects distribution at higher levels, he said.

Over the long term, analysts said gold adds stability, not growth, offering low-to-mid returns. Silver, they said, is cyclical, not defensive, showing higher volatility and positive equity correlation, making it a tactical risk-on asset rather than a hedge.