Investors hit the sell button hard this week, sending gold and silver into a tailspin on MCX amid dollar gains and rampant profit-taking. February gold futures shed nearly 9% to land at 1,49,075 rupees per 10 grams; March silver tanked 25% to 2,91,922 rupees a kilo.
Physical trade echoed the pain, with IBJA pegging 24-carat gold at 1,65,795 rupees per 10 grams—off 1,75,340 rupees. Enter Kevin Warsh: Trump’s nominee for Fed Chair, whose tough-on-inflation, anti-low-rate profile supercharged the greenback.
Leveraged bullion bets, meant to shield against dollar dips, unraveled fast as yields rose. The result? Frenzied selling liquidated billions, expelling overextended players in a sharp reality check.
Analysts frame it as near-term breather, not bear market onset. Bullish anchors hold: relentless central bank gold accumulation plus silver supply strains from green tech, electric mobility, AI boom, and electronic demands.
This pullback acts as vital therapy, stripping frothy risks for poised recoveries. Watch silver at 3-3.10 lakh rupees for dip-buying cues, with upside to 3.40-3.50 lakh in sight. Precious metals’ story: corrections yes, collapse no.