Gold and silver exchange-traded funds (ETFs) fell on Monday as prices of precious metals declined in the market.

Among the prominent funds affected were Nippon India ETF Gold BeES and Nippon India ETF Silver BeES, both of which traded lower, alongside other major gold and silver ETFs.

The decline in ETF values tracked the broader weakness in precious metal prices, with silver-linked funds experiencing a sharper correction than their gold counterparts. ETFs of this type are designed to track the price of the underlying metal, so their NAVs move in line with spot gold and silver prices.

The sharper move in silver funds is consistent with silver's historically higher volatility relative to gold. Because silver is a smaller market that sees both precious-metal and industrial demand, its price swings in both directions tend to be amplified compared with gold, and ETFs tracking it reflect that dynamic.

Precious metals, and the ETFs that track them, are sensitive to macroeconomic drivers such as movements in the US dollar, interest rate expectations, and central bank policy, all of which influence the relative appeal of non-yielding assets like gold and silver. In India, domestic gold and silver ETF prices also reflect rupee-dollar movements alongside global spot prices.

This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.