Gold and silver exchange-traded funds (ETFs) in India declined by up to 4% after global precious metal prices weakened amid a surge in crude oil prices and a strengthening US dollar, triggering volatility across bullion-linked investment products.

The decline followed a sharp drop in precious metal prices on the Multi Commodity Exchange (MCX), where gold and silver futures opened lower. A stronger US dollar put pressure on dollar-denominated commodities, while rising energy prices fuelled concerns about global inflation, reducing expectations of near-term interest rate cuts by major central banks.

Among gold ETFs, Nippon India Gold ETF recorded one of the steepest declines of around 4%, followed by Axis Gold ETF, which slipped about 3%. Other funds such as The Wealth Company Gold ETF also traded lower during the session. In the silver segment, Tata Silver ETF led the fall with a drop of about 3%, while ICICI Prudential Silver ETF and Bandhan Silver ETF declined roughly 2%.

Market participants noted that the correction comes after a strong rally in precious metals earlier this year, with gold trading near Rs 1.63 lakh per 10 grams and silver around Rs 2.84 lakh per kilogram in domestic markets.

Analysts said geopolitical tensions and volatility in global financial markets are likely to keep bullion prices fluctuating in the near term. Despite the short-term correction, experts suggest maintaining moderate exposure to precious metals as a hedge against inflation and geopolitical risk.