Despite the ongoing rebound, gold and silver, along with their respective ETFs are yet to scale back to their lifetime highs which they hit in late January this year.
Spot gold climbed as much as 4.2% to over $4,855 an ounce, after falling 4.8% in the previous session
Analysts have said that the previous 'violent' drop in the precious metals was more like a technical correction than a deterioration in core fundamentals, and that the longer term drivers remain intact.
Spot gold fell as much as 10% on Monday and is now down almost a fifth from an all-time high reached in the last-but-one session
Silver futures with March expiry have plunged around Rs 1.9 lakh per kilogram after hitting a fresh lifetime high on Thursday. Gold futures meanwhile fell Rs 56,000 per 10 grams during the same time.
Analysts say that Warsh’s hawkish stance and his appointment as Fed chair have lifted the dollar, while Trump’s comments on a potential Iran deal have eased geopolitical worries, pressuring WTI crude.
On Comex, the spot price of gold dropped as low as $4,600, but recovered some gains to hover just above $4,691 per ounce as of 3:32 GMT
Spot gold fell as much as 6.3% on Monday. Silver swung sharply, dropping to around $75 an ounce having earlier climbed as much as 3.2%.
Further downside pressure on precious metals may emerge early in the week as higher CME margins come into effect on Monday, February 2.
The Centre had slashed the customs duty on gold from 15 percent to 6 percent with effect from July 24, 2024.
Silver futures with March expiry reclaimed Rs 2.8-lakh mark, after hitting a low of Rs 2,65,652 per kilogram in the early trading hours of Sunday.
Experts advised investors to diversify, avoid panic selling, and eye rebounds from central bank demand.
Silver saw even more dramatic moves. Prices crossed $120 per ounce last week — one of the strongest rallies in decades — before tumbling to $98.50 on Friday.
The timing is crucial as the market braces for fresh volatility in an already volatile commodity sector.
The selloff reflected global market trends, with Comex spot silver falling to $98 an ounce, a 14.15% decline from the previous close.
The increase means those who want to trade futures of gold, silver, platinum and palladium will need to put up more collateral to ensure they can meet their obligations.
Copper fell almost 4% in London, after surging above $14,000 a ton for the first time Thursday in its biggest intraday jump since 2008.
Spot gold dropped 5.8% to $5,081.52 per ounce at 09:37 a.m. ET (1437 GMT), after retreating to an intraday low of $4,957.53 earlier. U.S. gold futures for February delivery slipped 4.1% to $5,079.60
A larger reserve buffer gives the central bank more firepower to defend the rupee. The currency is the worst performer in emerging markets this year, weighed down by outflows from equities and a delay in clinching a trade deal with the US
Investors should consider any fall as a buying opportunity and not a sign of any change in the trend, an analyst said.
The broader precious metals rally has been driven by persistent geopolitical and macroeconomic risks, coupled with a sharp depreciation in the US dollar, says analyst.
Gold demand is broadening across investor classes, ranging from crypto-linked capital flows to central banks, say analysts
The company has further identified land parcels for its nuclear energy projects and is under discussions with various states for the same.
Benchmark three-month futures dropped almost 4% to near $13,000 a ton on the LME, after peaking above $14,500 on Thursday
Trading pauses or delays are not entirely unheard of across global exchanges.