Precious Metals Plunge in “Historic” Selloff as Investors Pivot After Record-Breaking Rally
Gold and silver prices experienced a dramatic crash on Friday, triggered by intense profit-taking following a week of historic highs. On the MCX, silver futures tumbled by 3.04% while gold fell by 1.28%, a decline fueled by a rebounding US dollar and a shift in market sentiment. This “brutal” selloff also hit exchange-traded funds (ETFs) hard, with some silver-focused ETFs plunging as much as 14%. Despite this sharp correction, market analysts noted that the broader monthly trend remains incredibly strong, with silver still on track for its best monthly gain on record—exceeding 50% in January.
The sudden volatility, which some experts compared to 2008-crisis levels, was further amplified by political developments in the US. Reports suggesting the potential appointment of a less “dovish” Federal Reserve Chair under President Donald Trump’s administration unsettled investors who had been betting on looser monetary policy. While the World Gold Council warned of a potential dip in jewelry demand due to high prices, traders are now closely watching upcoming US economic data for direction. For many, this correction is seen as a historic trading opportunity amidst a tight physical market and ongoing geopolitical tensions.
