Silver ETFs Drop Up to 8%, Gold ETFs Fall Over 3% in June 2026 as Fed Rate Hike Fears Push Dollar to 13-Month High

Key Takeaways

1. Silver ETFs were off up to 8% and gold ETFs declined more than 3% in June 2026. A stronger US dollar, which touched 13-month high levels, along with Fed rate hike expectations took down the price of bullion. 
    
2. Gold prices had reached the level of $5,000 per ounce in 2026 but then dropped by over 25%. Silver prices have also fallen by over 40% from their peak levels. MCX Indian gold prices are below ₹51,000. 

Why Did Gold and Silver ETFs Fall in June 2026?

The US dollar hit a 13-month high in June 2026. The Federal Reserve flagged multiple rate hikes ahead for 2026. Gold and silver pay no interest, so when rates go up and the dollar gets stronger, money moves out of bullion fast. Geopolitical tensions in West Asia also eased, cutting another reason investors hold gold. Equity markets stayed strong, pulling more money away from precious metals.

MCX gold in India is now over ₹51,000 below its all-time high as of June 27, 2026. Silver has fallen even harder. The June 2026 quarter is set to be bullion’s worst in nearly 10 years. That ends a run of 5 straight quarterly gains for gold. ETF outflows and weak physical demand in India added more pressure. 

From Record Highs to Multi-Month Lows: What This Means for Indian ETF Investors?

Indian investors put serious money into gold ETFs on the way up. In January 2025 alone, gold ETF inflows in India hit nearly ₹3,751 crore, as per LoansJagat’s gold ETF blog.

A lot of that money came in near higher prices. The June 2026 correction means many retail investors are now in the red on paper.

Silver’s drop is steeper for a specific reason. It is not just a safe-haven metal. It also has industrial uses, so it reacts to both interest rate fears and falling risk appetite at the same time. The 2026 global silver deficit stands at 46.3 million ounces, the 6th year in a row of shortfall. 

Since 2020, around 762 million ounces have been pulled from stockpiles. Only 17% of silver in London vaults is freely available. Tight supply means prices move faster and further when sentiment turns.

What Experts Say? Where to Go From Here?

Harshal Dasani, Business Head at INVasset PMS, put it plainly, “The correction in gold and silver ETFs is a reset in the rate trade, not a breakdown of the bullion thesis. The performance of silver ETFs has been lower due to the higher beta of silver. Silver combines the precious metal demand with the demand of industrial metals; thus, when liquidity dries up, the fall is more severe.”

Citi sees silver recovering to as high as $150 if the Fed slows down or US data weakens. UBS stays positive on gold over the long term. Technical levels to watch: $3,850 for gold and ₹2,00,000 per kg for silver in India. 

Dasani suggests keeping long-term allocation separate from short-term momentum calls. For Indian investors, buying gold ETFs in small amounts over 6 to 12 months beats trying to call the bottom in 1 go. 

Conclusion

June 2026 has been rough for bullion investors. Silver ETFs are down up to 8%, gold ETFs over 3%, and MCX gold is ₹51,000 below its peak. The Fed, a strong dollar, and equity rotation drove the fall. Experts say the long-term case for gold holds. But at current prices, patience and phased buying matter more than timing.

FAQs

Gold dropped by 25%, while silver dropped by 40% compared to their respective 2026 highs. Does the bullish case for gold ETFs hold strong?

The long-term case holds, per UBS and INVasset PMS. But the Fed’s rate hike signals and a 13-month high dollar are keeping prices under pressure right now. Citi sees silver recovering to $150 if the Fed pauses. No clear reversal signal yet as of June 27, 2026.

I didn’t sell my gold ETF when it crossed $5,000 per ounce. MCX gold is now ₹51,000 below its peak. What do I do?

Do not panic sell. Harshal Dasani of INVasset PMS calls this a rate reset, not a trend reversal. Technical support for MCX gold sits near ₹2,00,000 per kg for silver and $3,850 for gold globally. Buy more in small amounts over 6 to 12 months rather than exiting at a loss.