Gold, Silver ETFs Jump 6% as West Asian Tensions Ease

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AuthorVihaan Mehta|Published at:
Gold, Silver ETFs Jump 6% as West Asian Tensions Ease
Overview

Gold and silver exchange-traded funds jumped as much as 6% on March 25, 2026, as de-escalating West Asian conflict improved investor sentiment. This geopolitical shift also led to a sharp drop in Brent crude to around $98 and a decline in U.S. 10-year yields. Equity markets responded positively, with benchmark indices Sensex and Nifty50 trading higher.

Precious Metals Shine as Geopolitical Calm Emerges

Gold and silver exchange-traded funds (ETFs) saw significant gains, rising up to 6% in early trading on March 25, 2026. This surge followed early indications of de-escalation in the West Asian conflict, which notably improved market sentiment.

Positive signals, including statements from U.S. President Donald Trump and Iran suggesting a potential winding down of regional hostilities, contributed to the shift. Iran's confirmation that "non-hostile ships can transit the Strait of Hormuz" offered reassurance for global energy security.

Commodity Prices and Yields React

The easing geopolitical situation had immediate effects on global markets. Brent crude oil prices dropped sharply, falling to approximately $98 per barrel. U.S. 10-year Treasury yields also retreated, while gold prices recovered. Analysts suggest that a sustained period of reduced geopolitical tension could support further market rebounds.

Specific ETF Performance

Gold ETFs:
Several gold ETFs tracked the upward trend. Quantum Gold Fund - Exchange Traded Fund (ETF) led gains with a 4% increase. Other notable performers included The Wealth Company Gold ETF (+3.89%), UTI Mutual Fund - UTI Gold ETF (+3.80%), and Kotak Gold ETF (+3.75%), underscoring renewed demand for the safe-haven asset.

Silver ETFs:
Silver ETFs also saw strong performance. UTI Silver ETF climbed 5.38%, and Groww Silver ETF advanced 5.77%. Angel One Silver ETF (+5.66%), Motilal Oswal Silver ETF (+5.44%), and Axis Silver ETF (+5.23%) recorded substantial gains.

Futures Market Activity

Momentum extended to futures contracts on the Multi Commodity Exchange (MCX). Gold April futures were up 3.78% at ₹1,44,370 per 10 gm, and silver May futures gained 5.54% to ₹2,36,338 per kg.

MCX Gold is currently trading within a ₹1,43,000–₹1,45,000 resistance band, indicating buying interest despite intraday fluctuations. A move above the ₹1,48,000 key resistance level could push prices toward ₹1,55,000–₹1,57,000. Support is observed between ₹1,37,000–₹1,40,000, with a break below potentially leading to declines down to ₹1,30,000–₹1,32,000.

For MCX Silver, the immediate resistance is at ₹2,40,000. A sustained breach above this level could target the ₹2,50,000 zone. Conversely, a fall below ₹2,27,000 might accelerate declines towards ₹2,15,000–₹2,20,000.

Equity Indices Join the Rally

The positive market sentiment also lifted broader equity markets. The benchmark BSE Sensex rose by 1,148 points (1.55%) to 75,216, and the NSE Nifty50 gained 358 points (1.56%) to trade at 23,269 levels, reflecting a widespread improvement in investor confidence.

Disclaimer:This content is for informational purposes only and does not constitute financial or investment advice. Readers should consult a SEBI-registered advisor before making decisions. Investments are subject to market risks, and past performance does not guarantee future results. The publisher and authors are not liable for any losses. Accuracy and completeness are not guaranteed, and views expressed may not reflect the publication’s editorial stance.