Mumbai: The Bombay Stock Exchange (BSE) clarified on Sunday that the change in the reference price for intraday price bands of gold and silver exchange-traded funds (ETFs) will be applicable only for the trading session of that day.
The stock exchange stated that this decision is valid solely for the current trading session. Earlier, BSE had imposed a 20 percent circuit limit on gold and silver ETFs.
In its statement, BSE noted, “Traders are informed that the change made to the reference price for the price bands of gold and silver ETFs is valid only for today.”
The reference price is the base price used to set the upper and lower price bands for shares or ETFs during the trading day.
BSE had previously announced that the ETF price would be based on the previous day’s net asset value (T-1 NAV) provided by the respective mutual fund. A 20 percent price band would be applied above and below this base price.
This measure comes in response to the sharp decline in the precious metals market. The exchange aims to prevent excessive intraday volatility and protect investors from sudden price shocks.
On Sunday, gold and silver prices continued to fall. After a significant rise over the past year, investors have started booking profits.
Gold for February delivery on MCX dropped by 7.12 percent to ₹1,39,000 per 10 grams at around 10 am. Meanwhile, March delivery silver fell 9 percent to ₹2,65,652 per kilogram.
Aksat Garg, Head of Research at Choice Wealth, said the steep fall in gold and silver ETFs may appear alarming but is mostly driven by emotions rather than any major negative news.
He added, “Precious metals saw a sharp rise over the past year, and what we are witnessing now is a mixed reaction due to profit booking, global instability, and macroeconomic signals. On such days, ETF prices tend to exaggerate movements both upwards and downwards.”
Garg advised investors not to panic and view precious metals as a portfolio hedge rather than a trading opportunity. He also recommended investing gradually during market dips instead of chasing rapid price increases.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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