The Bombay Stock Exchange (BSE) has clarified that the revised intraday price band reference price for gold and silver exchange-traded funds (ETFs) will be applicable only for today’s trading session.
The stock exchange stated that this decision is valid solely for today’s trading hours. Earlier, BSE had imposed a 20 percent circuit limit on gold and silver ETFs.
In its statement, BSE said, “Trading members are informed that the change in the reference price for the price band of gold and silver ETFs is valid only for today.”
The reference price serves as the base price to determine the upper and lower price bands for ETFs or shares during the trading day.
BSE had previously explained that the ETF price would be based on the previous day’s net asset value (T-1 NAV) provided by the respective mutual funds. A 20 percent price band will be applied above and below this base price.
This measure comes in response to the sharp decline observed in the precious metals market. The exchange aims to curb excessive intraday volatility and protect investors from severe price shocks.
On Sunday, gold and silver prices continued to fall. After a significant rise over the past year, investors have begun profit booking.
Gold for February delivery on the Multi Commodity Exchange (MCX) dropped by 7.12 percent to ₹1,39,000 per 10 grams around 10 am, while March delivery silver fell by 9 percent to ₹2,65,652 per kilogram.
Aksat Garg, Head of Research at Choice Wealth, noted that the steep fall in gold and silver ETFs may seem alarming but largely reflects emotional reactions rather than any major negative news.
He added, “The sharp rally in precious metals prices over the last year has led to profit booking, combined with mixed effects from global instability and macroeconomic signals. During such times, ETF prices tend to show exaggerated movements both upwards and downwards.”
Garg advised investors to avoid panic and view precious metals as a portfolio safeguard rather than trading instruments. He recommended gradual investment during price dips instead of chasing rapid gains.
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