Gold, silver ride India-US deal euphoria, gain up to 10%. What next for investors?

Experts recommend that investors allocate about 10-15 percent of their total portfolio to gold and silver

• Gold and silver prices rose nearly 10% after India-US trade deal news.
• Silver ETFs surged: HDFC up 10.79%, SBI up 9.98%.
• Experts advise allocating 10-15% of portfolios to gold and silver for stability

Did our AI summary help?

Gold and silver rebounded nearly 10 percent from recent lows on January 3, with India-US deal lifting sentiment even as the markets factored in the absence of key US economic data due to a partial government shutdown.

At noon, MCX gold was trading 4.99 percent higher at 1,50,169 for 10gms. MCX silver was up 9.2 percent at Rs 2,55,126 a kg.

Gold and silver exchange-traded funds (ETFs), which have taken a knock in the previous few sessions, posted strong double-digit gains, tracking the sharp rise in metal prices.

The HDFC Silver ETF jumped 10.79 percent, leading the rally, while the Mirae Asset Silver ETF rose 10.28 percent. The SBI Silver ETF also climbed 9.98 percent, as buying interest returned after recent weakness and trading activity picked up across silver-linked funds.

The HDFC Gold ETF gained 5.82 percent, leading the pack. The Axis Gold ETF rose 5.6 per cent and the Baroda BNP Paribas Gold ETF climbed 5.15 percent. Overall, gold ETFs posted solid mid–single–digit gains, reflecting renewed demand following recent price consolidation.

Gold and silver outlook

Markets are likely to remain volatile as participants reassess risk, reduce leverage, and wait for clearer signals, a Mirae Asset mutual fund report said.

"For now, the precious metals complex has moved from euphoria to introspection. The reset may ultimately prove healthy, but the events of the past few days will stand as a stark reminder: even assets seen as symbols of stability are not immune to excess or to sudden gravity," the report said.

What investors should know

The US–India trade deal has supported the rupee, with USD-INR appreciating toward 90.20, up nearly  percent, Renisha Chainani, Head of Research, Augmont, said. While tariff cuts will improve trade relations, "reduced uncertainty and a stronger rupee may temporarily cap domestic gold and silver prices by easing safe-haven demand and lowering import costs, despite supportive long-term fundamentals," Chainani said.

The traded price of a silver ETF can be influenced by market liquidity, bid–ask spreads,and temporary premiums or discounts to iNAV, particularly during volatile phases. These short-term trading dynamics can make returns appear more negative or positive than the actual move in silver.

Varun Gupta, CEO, Groww Mutual Fund, said, "From an investor perspective, it can be more useful to view gold and silver ETFs as part of a longer-term portfolio allocation rather than reacting to short-term price movements." Evaluating performance over a longer horizon and in the context of overall portfolio objectives helps put short-term volatility in perspective and allows the strategic role of silver to come through more clearly, he said.

Experts recommend that investors allocate about 10-15 percent of their total portfolio to gold and silver.