Silver Prices Drop in India

“Selling pressure intensified on the MCX today, with both metals hitting lower circuits, sliding 9 per cent earlier amid a brutal session, compounding Friday’s steep losses of 17 per cent in gold and 27 per cent in silver. Currently, gold trades 5 per cent lower after a modest intraday recovery, while silver holds declines as traders now approach the Union Budget cautiously, wary of potential changes to import duties on precious metals.”

“The sell-off was triggered by a sharp rebound in the U.S. dollar, broad-based global market weakness, and the Trump administration’s nomination of Kevin Warsh, widely regarded as an inflation hawk, as the next Federal Reserve chair.”

“Data shows that until 29th January, silver had surged 319 per cent year-on-year in rupee terms, while gold had risen 118 per cent. Even after a correction of around 11 per cent in silver and 4.3 per cent in gold on 30th January, silver remains up 268 per cent YoY and gold 108 per cent YoY.”

“The ETF prices have turned volatile on the downside, also on the back of expectation around changes in customs duty on Gold & Silver, in the Union Budget.”

“Today’s sharp fall in gold and silver ETFs looks scary on the screen, but it’s more of a sentiment shock than a story-breaker. Precious metals had run up sharply over the last year, and what we’re seeing now is a mix of profit-booking, global volatility and reaction to macro cues.”

“For investors, this isn’t a moment for panic. Gold and silver are portfolio hedges, not trading bets. If your allocation is sensible, staying put makes sense.”