Precious metal exchange-traded funds (ETFs) tracking gold and silver witnessed a significant surge on Wednesday, attributed to a sharp increase in customs duty. The Indian government raised the customs duty on both gold and silver to 15 percent, up from the previous 6 percent, a move that immediately impacted the market.
Expert Advice: Hold Your Gold Silver ETFs
Anshul Jain, Head of Research at Lakshmishree Investment & Securities, weighed in on the market's reaction, advising investors in gold and silver ETFs to maintain their current positions. Speaking to BTTV, Jain expressed confidence that the recent rally in precious metals has further momentum.
The market expert noted that Comex gold and silver futures had been trading within a narrow range for several sessions prior to the customs duty announcement. The government's decision acted as a catalyst, propelling the ETFs upward.
Price Targets for Gold and Silver
Jain provided specific outlooks for the futures market. He projects that Comex gold futures could reach approximately $4,775 per ounce, indicating an upside of around $60 from recent levels. For Comex silver futures, which were trading at $87.44 per troy ounce, Jain foresees a potential $10 upside. However, he also cautioned that some profit booking might occur once these levels are achieved.
The advice comes as individual investors, such as Suraj from Kerala who holds Nippon India Silver ETF (Silver BEES), seek clarity on how to navigate the volatile precious metals market following such policy changes. The expert consensus suggests that the increased customs duty has fundamentally altered the short-term trajectory for these assets.