Silver exchange-traded funds experienced unprecedented gains on Thursday, surging up to 6% following a dramatic pullback in US Treasury yields. According to Business Standard, Tata Silver ETF, Nippon Silver ETF, HDFC Silver ETF, SBI Silver ETF, Axis Silver ETF, DSP Silver ETF, and Groww Silver ETF all gained over 4% each, while Mirae Asset Silver ETF, ICICI Prudential Silver ETF, Aditya Birla Sun Life Silver ETF, Edelweiss Silver ETF and Motilal Oswal Silver ETF all gained over 3% on Thursday. The performance was driven by the US Treasury Department's announcement to double the size of liquidity support buyback operations, which helped pause the surge in yields. The yield on 30-year US Treasuries fell to 5.18% after it touched 5.3% on Tuesday, providing significant support to precious metals globally.
Silver prices achieved a significant milestone as MCX silver crossed ₹2.48 lakh, gaining 1.44% to ₹2,46,751 per kg on Friday, while COMEX silver rose 2.47% to $70.59 per ounce and spot silver gained 2.29% to $69.65 per ounce. The latest data from The Hindu BusinessLine shows silver futures jumped ₹2,163 to ₹2.38 lakh per kg in futures trade on Thursday, with MCX silver for September delivery climbing ₹2,163, or nearly 1%, to ₹2,38,950 per 10 grams in a business turnover of 10,383 lots. In international markets, Comex silver futures for September delivery were trading 1.58% higher at $66.86 per ounce in New York. The buying momentum was stronger in the ETF segment, where the listed silver funds recorded gains ranging from 3.81% to 4.60%. ICICI Prudential Silver ETF rose 3.94% to ₹235.12, Axis Silver ETF gained 3.97% to ₹233.96, Edelweiss Silver ETF advanced 3.91% to ₹235.29, and Motilal Oswal Silver ETF climbed 3.81% to ₹232.43.
Silver prices in India moved up by 0.85% on August 21, 2026, with 1 gm of silver priced at ₹246, 10 gm at ₹2,460, and 1 kg at ₹2,46,040. According to The Financial Express, the price movement reflects the soft dollar and US Treasury's bond buyback decision, with a weak greenback making precious metals less expensive for holders of other currencies. Silver prices in India are largely influenced by international spot silver rates, US dollar fluctuations, and import duties on silver among other factors. The current rates show uniformity across major metropolitan cities, with Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, and Ahmedabad all maintaining the same ₹246 per gm rate.
The rally also highlights the strong returns delivered by silver ETFs over the past year, with ICICI Prudential Silver ETF generating one-year returns of 101.99%, followed by Axis Silver ETF at 101.36%, Edelweiss Silver ETF at 101.15%, 360 ONE Silver ETF at 101.07%, and Motilal Oswal Silver ETF at 100.84%. Among the seven funds, Bandhan Silver ETF and Angel One Silver ETF also participated strongly in the latest rally, though one-year return data for these two funds was not provided. The gains follow the sharp correction in silver prices, with the metal falling below $58 per ounce in the recent past, making the subsequent recovery particularly attractive to investors reassessing precious metals outlook.
Markets expect the US Federal Reserve to keep its rate unchanged at its September meeting, contrary to earlier expectations of a rate hike, which has added to silver gains. According to The Financial Express, lower interest rates reduce the opportunity cost of holding non-interest-bearing assets like gold and silver. The white metal is trading with bullish momentum as investors turn towards safe-haven assets driven by heightened volatility in currencies and bonds. Analysts suggest that silver prices will trade with a positive bias in the near term, driven by a soft dollar, a change in yields, and lowered expectations of a rate hike. MCX Silver opened with a gap up near ₹245,000, up 0.64%, holding firm near multi-week highs after a sharp rally from the ₹230,000 zone, with immediate resistance at ₹245,000-246,000 and next resistance at ₹250,000-251,000. The latest rally comes amid heightened volatility in global bond markets and renewed weakness in the US dollar, with the Bloomberg Dollar Spot Index declining 0.3% on Friday.
