Gold and silver funds posted strong gains this week as investors rushed toward safe-haven assets amid renewed global market volatility and growing uncertainty over the U.S. Federal Reserve’s interest rate outlook.
According to industry data, inflows into precious metal mutual funds and exchange-traded funds (ETFs) rose sharply, with gold-focused funds recording their biggest weekly surge in nearly three months. Silver funds followed closely, buoyed by rising industrial demand and speculative buying.
Spot gold prices climbed above $2,370 per ounce, while silver breached the $28 mark, reflecting renewed investor interest. Analysts attributed the surge to a mix of factors, including weaker U.S. dollar performance, easing bond yields, and persistent geopolitical tensions in the Middle East.
“Investors are clearly hedging against market risk and inflation,” said Anand Rathi, a commodities strategist based in Mumbai. “With uncertainty surrounding global growth and rate decisions, gold and silver have re-emerged as preferred stores of value.”
Data from leading fund houses show that gold ETFs added over 10 tonnes to their holdings in the past week alone, reversing months of outflows. Silver funds, too, have seen renewed momentum, with investors betting on rising industrial consumption tied to solar energy and electric vehicles.
Market watchers note that while precious metals are expected to remain volatile in the short term, sustained demand from both retail and institutional investors could support higher prices through the end of the year.
“The trend is clear — when uncertainty rises, so does demand for gold and silver,” said Rohit Desai, fund manager at Axis Mutual Fund.
With economic signals mixed and inflation pressures persisting, analysts expect precious metal funds to continue outperforming broader market indices in the near term.
