Daijiworld Media Network – Mumbai
Mumbai, Nov 4: Gold and silver exchange-traded funds (ETFs) witnessed a strong recovery on Wednesday, November 4, with several funds gaining between 3% and 6% on the stock exchanges, following a rebound in precious metal prices in domestic and international markets.
Silver ETFs led the gains, with some funds rising close to 6%. Tata Silver ETF and Groww Silver ETF advanced around 6% each, while Nippon India Silver ETF gained 5.76% and HDFC Silver ETF rose 5.95%.
Among gold ETFs, ICICI Prudential Gold ETF gained 3.52%, while Nippon India ETF Gold BeES advanced 3.37% as of 2.45 pm.
The recovery followed a recent correction in gold and silver prices and was supported by a weaker US dollar, declining US Treasury yields and renewed geopolitical and political uncertainties.
In international markets, spot gold rose 2.4% to USD 4,021.68 per ounce, while US gold futures for December delivery gained 2.3% to USD 4,031.20 per ounce.
Silver prices outperformed, climbing 4% to USD 51.74 per ounce. Spot platinum advanced 2.5% to USD 1,451.95 per ounce, while palladium gained 4.2% to USD 972.74 per ounce.
The recovery was also reflected in domestic commodity markets. On the Multi Commodity Exchange (MCX), December gold futures rose around 2.08% to Rs 1,42,353 per 10 grams, while silver futures gained 3.55% to Rs 1,86,081 per kg in afternoon trade.
The movement in precious metals coincided with the outcome of the US midterm elections, which, according to the report, saw Democrats secure control of both chambers of Congress, dealing a setback to President Donald Trump and the Republican Party.
Investors moved towards safe-haven assets amid uncertainty over the political and economic outlook. The weakening US dollar and decline in Treasury yields further supported bullion prices. A weaker dollar makes gold and silver more affordable for buyers using other currencies, while lower bond yields improve the relative attractiveness of gold, which does not pay interest.
Geopolitical tensions, including the continuing uncertainty surrounding the US-Iran conflict, also contributed to safe-haven demand.
Market participants are now awaiting the US non-farm payrolls report due on Friday for fresh indications about the labour market and the Federal Reserve's interest rate outlook. Strong employment data could strengthen expectations of higher interest rates, while signs of weakness may support expectations of monetary easing.
Despite the recent recovery, India's physical gold demand faces challenges due to elevated prices. The World Gold Council expects the country's gold demand to fall to a six-year low in 2026, as high prices weigh on jewellery purchases and investment demand moderates.