Gold and silver exchange-traded funds (ETFs) recorded historic intraday gains of up to 18% on Monday morning as investors rushed toward safe-haven assets following escalating hostilities in West Asia. The rally was fueled by a sharp spike in international bullion prices, with silver outperforming gold, and a weakening Indian rupee, which hit 91.26 against the dollar. While equities witnessed a bloodbath (Sensex down over 1,000 points), precious metal ETFs acted as the primary portfolio hedge for diversified investors.

Record-Breaking Rally in Precious Metal ETFs

Precious metal ETFs saw unprecedented buying interest in early trade:

• Silver ETFs: Leading the rally, several funds, including Tata Silver ETF and Nippon India Silver ETF, saw intraday spikes between 13% and 18%.
• Gold ETFs: Tracking the rise in international spot prices, gold-backed funds like SBI Gold ETF and HDFC Gold ETF posted gains of 8% to 10%.

The rally in ETFs mirrors the chaos in domestic equity benchmarks, where the Nifty 50 plummeted below the 24,900mark, driving a massive rotation into bullion.

Underlying Bullion Strength Driving NAV Gains

The rise in ETF prices reflects a vertical move in global metal prices:

• International Gold: Trading near $5,180 - $5,200 per ounce.
• International Silver: Witnessing a massive "short squeeze," with prices surging toward $90 per ounce.
• Domestic Impact: On the MCX, gold futures for April delivery are trading near ₹1,67,900 per 10 grams, while silver has crossed the ₹2.84 lakh per kg mark.

Because ETFs are backed by physical bullion, their Net Asset Values (NAVs) have adjusted in real-time to these extreme price movements.

2026 Inflows and Market Context

The current spike comes amidst an already robust year for metal funds:

• Gold ETFs: Have attracted nearly $18 billion in global net inflows so far in 2026.
• Silver Growth: Indian silver ETFs have seen their AUM expand by over 40% in the last 12 months, driven by retail interest in silver as a "hybrid" asset (safe-haven + industrial metal).
• Currency Factor: The Indian rupee’s slide to 91.26 has increased the landed cost of imported gold, further boosting domestic ETF prices.

Why Investors are Buying

• Direct military strikes in Iran have introduced extreme uncertainty into global markets.
• With Brent crude jumping 10% to $78.50/bbl, bullion is being used as a primary inflation hedge.
• The Sensex's 1,100-point drop has triggered "stop-loss" selling in stocks and "panic buying" in metals.