Gold and silver ETFs rallied up to 5% on Friday after gold and silver prices opened sharply higher on the Multi-Commodity Exchange (MCX), extending their gains for a second consecutive session. The rebound came as crude oil prices slipped to a two-month low amid growing optimism over a potential peace agreement between the US and Iran, boosting sentiment towards precious metals.
Among gold ETFs, Baroda BNP Paribas Gold ETF emerged as the top gainer, surging around 5% to an intraday high of Rs 147 from its previous close of Rs 140. Bandhan Gold ETF advanced 4%, while most other gold ETFs posted gains of 2–3%. SBI Gold ETF and HDFC Gold ETF rose 2% each.
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In the silver ETF segment, 360 One Silver ETF led the rally with a 5% gain on Friday. Other silver ETFs, including SBI Silver ETF, HDFC Silver ETF, and Tata Silver ETF, climbed up to 4%, while several others gained around 3%.
Abhishek Bhilwaria, Partner, BhilwariaFinserv, told ETMutualFunds that investors should approach the current gold market with strategic patience, prioritising long-term portfolio insurance over short-term speculative trading as prices consolidate following recent multi-month corrections.
To navigate this volatility effectively, Bhilwaria recommended maintaining a disciplined asset allocation of 5% to 10% of your total portfolio, using a staggered "buy-on-dips" approach rather than making large lump-sum bets.
Furthermore, investors looking to expand their exposure should avoid panic selling and favour liquid, cost-effective digital instruments like Gold ETFs or mutual funds over physical bullion to eliminate high storage and premium costs, he further said.
U.S. President Donald Trump said a deal with Iran could be reached as early as this weekend. In a post on Truth Social, Trump said he had called off the strikes after discussions with Iran were elevated to the highest levels of the Iranian leadership and received approval.
He said key points of a proposed agreement had been approved "in both concept and great detail" by parties including the United States, Israel, Saudi Arabia, the UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan and Egypt, among others.
Domestic and international market
In the domestic market, MCX silver futures for July 2026 delivery were up Rs 5,167 (2%) to Rs 2,44,817 per kg. Gold futures for August 2026 delivery rose Rs 649 to Rs 1,49,581 per 10 grams. With today’s gain, silver has risen Rs 0,012 or 4% in two days, while gold has surged Rs 1,600.
In the international market, Spot gold was down 0.5% at $4,191.17 per ounce, as of 0252 GMT, and was set for a weekly loss of 3.2%. U.S. gold futures for August delivery rose 2.4% to $4,212.70. Spot silver fell 0.4% to $67.10 per ounce.
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According to Manoj Kumar Jain of Prithvi Finmart, MCX gold has support in the Rs 1,47,700–Rs 1,46,300 range and resistance between Rs 1,50,000 and Rs 1,51,500. MCX silver has support at Rs 2,36,600–Rs 2,32,000, while resistance is placed at Rs 2,43,300–Rs 2,47,700.
Jain advised investors to maintain the prescribed stop losses and book profits at the stated target levels, noting that silver had already achieved its second target during the previous trading session.
( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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