Silver exchange‑traded funds witnessed a sharp decline on Thursday as safe-haven demand weakened following easing global tensions led by Trump pulling
back tariff on EU nations and a pullback in precious metal prices. The broader slide in silver came after global risk sentiment improved, leading investors to shift away from defensive assets. As a result, nearly all major Silver ETFs in India registered steep losses, reflecting the pressure in the underlying metal. Tata Silver ETF declined 24 per cent, followed by Mirae Asset Silver ETF fell 22 per cent intraday. Several others also saw sizeable corrections, with Edelweiss Silver ETF down 9.90 per cent around 11:45 AM, Motilal Oswal Silver ETF sliding 9.71 per cent at the same time, and Nippon Silver ETF (SILVERBEES) declining 9.59 per cent near noon. The selling pressure was broad‑based across the category, mirroring the cooling demand for safe-haven commodities. Even the relatively resilient funds faced notable losses. HDFC Silver ETF slipped 9.16 per cent, while SBI Silver ETF and 360 ONE Silver ETF fell 8.58 per cent and 9.44 per cent, respectively. ETFs from ICICI Prudential, Kotak, DSP, Axis, UTI, Zerodha, Groww, and others recorded declines in the 7–9 per cent range. The decline came after Gold and silver prices pulled back from record highs on Thursday (January 22) as safe‑haven demand weakened following US President Donald Trump’s announcement that he would suspend the planned Greenland‑related tariffs. Gold prices were trading 1.2 per cent, or Rs 1,796 lower, at Rs 1,51,066, and silver prices were trading at Rs 3,11,708, down Rs 6,784 points or 2.13 per cent. Declining safe-haven demand typically weighs on gold prices, as investors shift away from low-risk assets during periods of reduced geopolitical uncertainty. During his Davos visit, Trump said that the US and NATO have formed the framework of a future deal concerning Greenland and the wider Arctic region, and that he would suspend tariffs that were scheduled to take effect on February 1. In a post on his Truth Social platform, Trump said the understanding followed what he described as a “very productive meeting” with NATO Secretary General Mark Rutte. He said the proposed arrangement, if finalised, would benefit the United States and all NATO nations. Trump added that discussions were also underway on the “Golden Dome” missile defence concept as it relates to Greenland. (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
