Silver spot prices crash 7% overnight; Indian ETFs fall up to 2.75%

Why spot silver prices crashed overnight ?

This increased the bets of a rate hike by the US Federal Reserve. Elevated crude oil prices driven by the geopolitical uncertainties in the Middle East also continue to cap the gains for silver.

US CPI inflation for September stood at 3.7%, higher than the forecast of 3.6%, while on a month-on-month basis its increased to 0.6%, marking its largest gain in five months. Following stronger-than-expected inflation data, the dollar index strengthened, and US Treasury yields soared.

A strong dollar makes precious metals and US treasuries more expensive for holders of other currencies, thereby denting demand.

The shiny metal initially suffered, and the effect of the same played on Indian ETFs as well. Most Silver ETFs in domestic markets ended the session in red declining around 2.75%

Silver ETFs post steep decline

Tata Silver Exchange Traded Fund ended at Rs 20.08, down 2.57%, while Nippon India Silver ETF closed at Rs 197.57, decreasing 2.58%, and Groww Silver ETF wrapped up at Rs 20.07, lower by 2.50%. HDFC Silver ETF closed at Rs 197.36, down 2.56%, while Zerodha Silver ETF ended at Rs 20.90, falling 2.75%, and Angel One Silver ETF stood at Rs 7.93, down 2.46%.

Kotak Silver ETF closed at Rs 20.06, decreasing 2.48%, while ICICI Prudential Silver ETF ended at Rs 206.23, falling 2.67%, and SBI Silver ETF stood at Rs 202.70, down 2.56%. Aditya Birla Sun Life Silver ETF was at Rs 206.47, down 2.58%, while UTI Silver ETF traded at Rs 199.26, shrinking 2.63%, and Axis Silver ETF stood at Rs 205.60, declining 2.59%.

Mirae Asset Silver ETF closed at Rs 201.41, down 2.62%, while DSP Silver ETF ended at Rs 19.88, declinig 2.60%, and Edelweiss Silver ETF fell to Rs 207.00, down 2.46%. 360 ONE Silver ETF was at Rs 203.81, down 2.46%, while Bandhan Silver ETF closed at Rs 207, falling 2.44%, and Motilal Oswal Silver ETF stood at Rs 204.43, decreasing 2.67%