Amidst the turmoil in the stock market, a different glow was seen in the commodity market and its related investment options (ETFs) on Wednesday. After the announcement of 15-day ceasefire between America and Iran, while on one hand the stock market boomed, on the other hand there was a flood of investment in Gold and Silver Exchange Traded Funds (ETFs). The situation was such that the prices of many silver ETFs jumped by more than 4% in a single day.
Tsunami in silver ETFs
The most enthusiasm in the market was seen in silver related ETFs. The direct effect of increase in demand for silver in the international market was visible on the Indian exchanges. SBI and Nippon India Silver ETF recorded a stormy rise of more than 4.3%. At the same time, ICICI Prudential Silver ETF closed with a gain of about 4.1%. Tata Silver ETF also saw a gain of more than 4%. Experts say that silver is not only considered a safe investment, but industrial demand has also boosted its prices.
The shine of gold also became brighter
Gold ETFs also did not disappoint investors and kept pace with the international rally. Nippon India Gold BeES saw a gain of about 2.4%. ICICI and SBI Gold ETFs were also seen trading up by more than 2.3%. Spot gold prices have risen 2.3% in the global market to close to $4,812 an ounce, which is the highest level in the last three weeks.
Why are the prices of precious metals rising?
After the ceasefire, the prices of crude oil have fallen, due to which the fear about inflation has reduced a bit. But meanwhile, the weakness in the US dollar has made gold and silver cheap and attractive for foreign investors. Generally, when the dollar weakens, gold prices get support.
What do market experts say?
Market experts say that currently the behavior of investors is quite interesting. On one hand they are investing money in the stock market (equity), on the other hand they are not leaving gold and silver in view of the uncertainty of the future. This is called mixed sentiment.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
