Gold and silver exchange traded funds (ETFs) recovered partially on Feb. 2, 2026, after crashing sharply earlier today extending the bearish sentiment that has prevailed the commodity market after US President Donald Trump picked Kevin Warsh as the new Federal Reserve Chairman to succeed Jerome Powell. Gold and silver prices crashed in the previous session after increased CME margin requirements added to the selling pressure following last week's selloff among the precious metals.
Kotak Silver ETF, and Tata Silver ETF, Edelweiss Silver ETF, which had hit 20% lower circuit earlier during the day, recovered up to 10%. Gold futures, due for a Feb. 5 pared losses from earlier today and were last trading 2.8% higher at Rs 1,46,201 per 10 grams on the multi commodity exchange. MCX gold is down 19% from record high. Silver futures, due for a March 5 expiry, crashed 15% earlier and were last trading 2.5% lower at Rs 2,59,014 per one kg. MCX silver is currently down 38% from record high.
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Gold, Silver Price Trend
Bullion shed more than 9.8% on Jan. 30, in its sharpest one-day drop since 1983. Gold has lost about $900 since hitting an all-time-high of $5,594.82 on Jan. 29, erasing most of this year's gains. Spot silver has shed about 33% since notching up an all-time-peak of $121.64 last week. The CME announced hikes in margins on its precious metal futures on Jan. 30 and said the changes were set to take effect after market close on Monday.
"The recent decline in Gold and Silver ETFs is primarily a reflection of the fall in international gold and silver prices, particularly on Jan. 30, 2026. This decline translated into ETF markets yesterday, as exchanges were open due to the Union Budget session, with Feb. 1 being the immediate working day following the international market correction,'' said Sriram B K R, Senior Investment Strategist, Geojit Financial Services.
Both gold and silver have seen an unprecedented and massive rally over the past year. Until Jan. 29, silver had surged 319% year-on-year in rupee terms, while gold had risen 118%. Even after a correction of around 11% in silver and 4.3% in gold on 30th January, silver remains up 268% YoY and gold 108% YoY. ''Prices are still at elevated levels. If supported by new, sustainable fundamental factors, they may hold, though the current signals are mixed,'' said Sriram B K R.
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What should investors do?
Global tensions and uncertainty may continue to support gold as long as they persist. Both asset classes appear due for a price consolidation, though timing such a move is extremely difficult. ''We continue to advise investors not to chase recent rallies and instead remain disciplined with asset allocation. Investors should exercise caution at these levels,'' said Sriram B K R.
According to Akshat Garg, Head Research & product of Choice Wealth, the 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. ETFs tend to exaggerate moves on such days, both up and down.
''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. If anything, staggered buying during corrections works better than chasing rallies. Volatility hurts emotions, not long-term plans,'' added Garg.
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