Gold, silver ETFs rebound up to 17% a day after crash as precious metals hit new highs: What lies ahead?

Gold and Silver ETF surge

• Gold and silver ETFs rebounded up to 10 percent after previous day's sharp fall
• Gold and silver futures reach record highs due to weak US dollar and tensions.
• Safe-haven demand for precious metals rose despite easing tariff concerns

Did our AI summary help?

Gold and silver exchange traded funds (ETFs) rebounded sharply on January 23, rising as much as 17 percent as the precious metals regained ground after some correction.

This comes a day after the ETFs crashed significantly following a record rally, as tariff concerns eased. While the ETFs are still away from their recent highs, the precious metals surged to fresh lifetime highs.

Precious metals hit fresh all-time highs:

Gold futures with February expiry on MCX hit fresh all time high of Rs 1,59,226 per 10 grams. The contracts with April and June expiries also hit lifetime highs at Rs 1,68,000 per 10 grams and Rs 1,73,676 per 10 grams, respectively.

Silver futures with March expiry jumped to a fresh all time high of Rs 3,39,927 per kilogram. The contracts with May and July expiries were also at all-time high levels. This comes after the contracts fell around 4 percent yesterday.

COMEX silver contract neared $100 per ounce and the gold contract neared $5,000 per ounce, as geopolitical tensions lingered even as US President Donald Trump walked back on his threats of imposing tariffs on European Union nations in his push to acquire Greenland.

The commodity prices also rose as the US dollar remained weak. The dollar remained down on Friday, to record its worst week so far in a year, after falling the most in a month in the US trading session. A weaker dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand.

The safe-haven demand for both precious metals continued to rise amid uncertainty around the Greenland issue despite Trump's statements about working towards a future deal. Details of the "framework" of the deal have been hazy, and European officials on Thursday appeared to be willing to talk about it only in vague terms, Dow Jones reported.

European Union leaders met for a summit late on Thursday after Trump stepped back from his threat to impose new tariffs over Greenland, Blomberg reported. While Trump's step back has removed the immediate threat to European economic and geopolitical sovereignty, leaders are beginning to sift through the longer-term implications, the report said.

During the summit, European leaders said they wanted an EU-US trade deal to be back on track after the European Parliament suspended its ratification in protest over Trump's threats. However, Trump's threats shook Europe's confidence in its partner, Reuters reported, quoting EU officials and leaders as saying. "Transatlantic relations have definitely taken a big blow over the last ‌week," the report quoted the bloc's foreign policy chief Kaja Kallas as saying. While saying ‌they want to work on strengthening transatlantic cooperation, the EU leaders warned that they were ready to act if Trump was to threaten them again, the report said.

Gold ETFs:

Groww Gold ETF, Invesco India Gold ETF, Motilal Oswal Gold ETF and Axis Gold ETF climbed around 4 percent each, while 360 ONE Gold ETF, Bandhan Gold ETF, Tata Gold ETF, Angel One Gold ETF, Zerodha Gold ETF, Quantum Gold ETF, ICICI Prudential Gold ETF, Edelweiss Gold ETF and Union Gold ETF meanwhile gained more than 3 percent each.

LIC Mutual Fund Gold ETF, Nippon Gold ETF, Nippon India ETF Gold Bees, HDFC Gold ETF and others meanwhile gained around 3 percent each.

Silver ETFs:

360 ONE Silver ETF was the top gainer, jumping more than 10 percent, while Tata Silver ETF, which had crashed up to 24 percent yesterday, jumped 9 percent today. Mirae Asset Silver ETF, Axis Silver ETF, Edelweiss Silver ETF, Aditya Birla Sun Life Silver ETF, DSP Silver ETF, ICICI Prudential Silver ETF and others gained around 9 percent each.

Nippon India Silver ETF, HDFC Silver ETF, Zerodha Silver ETF and others gained more than 8 percent each.

What lies ahead?

Despite price swings, the fundamentals of the precious metals are compelling, driven by near-record industrial demand from solar panels, electric vehicles and AI infrastructure, said Tanvi Kanchan, Associate Director, Anand Rathi Share and Stock Brokers.

"Rather than deploying capital all at once, investors should consider spreading purchases over the coming weeks or months. This approach captures the dip while protecting against further corrections that could see silver test," the analyst said.

"For conservative investors, allocating 5-10% of portfolios to precious metals ETFs through systematic purchases reduces timing risk while maintaining exposure to an asset class that benefits from geopolitical instability and monetary policy uncertainty. The structural deficits and industrial demand provide a floor, but expect continued volatility as the market digests 2025's historic run," she added.

The sharp surge in gold and silver ETFs is a clear reflection of how aggressively investors are repositioning toward safe-haven assets amid heightened global uncertainty, said Justin Khoo, Senior Market Analyst - APAC, VT Market.

"Gold prices trading near $4,950–$4,970 per ounce on COMEX, while silver rallies close to $99 per ounce, have pushed both metals firmly into record territory. This strength is being reinforced by a softer US dollar, persistent geopolitical tensions, and growing concerns around currency stability, all of which are driving strong ETF inflows as investors prefer liquid, regulated exposure. The move is equally striking, with gold prices approaching ₹1.6 lakh per 10 grams and silver nearing ₹3.5 lakh per kg, underscoring the global nature of the rally," the analyst said.

While the momentum remains intact, such elevated levels also increase the risk of short-term volatility and profit-taking, Khoo said, adding that ETF demand still suggests investor conviction in precious metals as a strategic hedge remains robust.

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