A perfect storm of profit harvesting and dollar dominance battered gold and silver prices this week, delivering stomach-churning drops that shook investors. MCX data revealed February gold down almost 9% to 1,49,075 rupees per 10 grams, with March silver plunging 25% to 2,91,922 rupees per kg.
IBJA spot quotes confirmed the rout: 24-carat gold at 1,65,795 rupees for 10 grams, sliding from 1,75,340 rupees. The trigger was clear—US President Trump’s endorsement of Kevin Warsh, a staunch inflation fighter skeptical of easy money policies, as next Fed head.
This propelled the dollar skyward, inflating bond yields and dismantling bullion’s appeal. Investors liquidated leveraged positions aggressively, erasing vast swathes of value and sidelining shaky speculators.
Market sages caution this marks tactical exhaustion, not a bearish regime shift. Long-haul drivers shine bright: central banks’ gold binge and silver’s deepening deficits from renewable energy, EV batteries, AI infrastructure, and consumer electronics.
‘Consider this dip a market cleanse—speculative excess purged, setting up healthier climbs,’ pros advise. Silver buyers might pounce at 3-3.10 lakh per kg, eyeing a sprint to 3.40-3.50 lakh. The bullion saga underscores resilience amid turbulence.