30.03.2026 14:30
The decision to base India's gold and silver funds on local prices instead of London is considered a significant development that could increase volatility in global markets and have an indirect impact on prices.
The Securities and Exchange Board of India (SEBI) announced that mutual funds will now value their gold and silver assets based on local exchange spot prices instead of London prices. It is stated that this decision could have an impact on global markets.
VALUATION SYSTEM IS CHANGING
With the new regulation, mutual funds in India will base their valuation calculations on local market prices instead of international prices. This will lead to the performance of the funds being directly dependent on price movements in the domestic market.
IMPACT EXPECTED IN GLOBAL MARKETS
Experts express that India's move, being one of the largest consumers of gold and silver in the world, could create indirect pressure on global prices. It is assessed that if local demand increases, upward movements in international prices may be observed.
PRICE DISPARITY MAY OCCUR
It is noted that the decision could cause prices in India to diverge from global markets in the short term. It is particularly stated that the buying demands of ETFs and mutual funds could push local spot prices higher.
FLUCTUATIONS MAY INCREASE
Valuing funds based on local prices will directly reflect short-term price movements. It is anticipated that this situation could increase volatility in gold and silver prices both in the Indian market and on a global scale.
INVESTORS ARE CLOSELY MONITORING
While global investors are expected to monitor spot prices in India more closely, it is stated that changes in ETF and fund demand could influence international prices.