Despite elevated geopolitical tensions, trade worries, and policy uncertainty in Washington, the sell-off in precious metals deepened further in Monday’s session, February 2, as investors appeared to accelerate their dumping spree. Precious metals, which were once trading at record highs, are now struggling near multi-month lows.
Apart from gold and silver, platinum prices also faced significant pressure, with spot platinum falling another 14% in today’s session to a low of $1,858 per troy ounce, extending its losing streak to the third consecutive day.
Taking today’s low into account, the metal has lost a cumulative 30.2% of its value in three days and is down around $1,027, or 35.6%, from the recent peak of $2,885. Palladium has also fallen about 31% from its recent record highs.
Platinum and palladium, widely used in automotive catalytic converters, had made significant gains in 2025, with spot platinum finishing the year up 126%, marking the largest annual advance since at least 1987—also twice the rally of gold.
Palladium closed the year with a massive 81% surge, driven by tight supply, tariff uncertainties, and rotation from gold investment demand.
Gold prices down 25% from recent highs
After a crash of ₹7,436 per 10 grams in the previous session, gold prices remained lower today, with February future contracts falling another ₹5,152, or 3.6%, to the day’s low of ₹1,37,065 per 10 grams.
The latest crash brings the gold rate ₹43,714 per 10 grams, or 25%, from the recent peak of ₹1,80,779″>down by ₹43,714 per 10 grams, or 25%, from the recent peak of ₹1,80,779.
During Friday’s session, gold prices on MCX tanked nearly ₹20,000 per 10 grams to ₹1,49,653, the biggest single-day crash in recent history.
Before the crash, gold had climbed almost 25% since the beginning of January, but the sell-off erased the majority of those gains, bringing its monthly return to 10.5%; however, it kept its monthly winning run to eight.
Silver prices slide nearly ₹2 lakh in just three trading sessions
Silver prices, which had a dramatic run in January, have reversed all of those gains lately, with March delivery futures contracts on MCX tumbling another ₹40,000 per kilogram in today’s intraday session, falling to the day’s low of ₹2,25,805.
This followed a ₹26,273 crash during the special trading session on Sunday, February 1. The three-day sell-off in silver prices, including today, has resulted in a ₹1,94,243, or 46%, from Thursday’s peak of ₹4,20,048″>decline of ₹1,94,243, or 46%, from Thursday’s peak of ₹4,20,048.
In the international market, spot silver prices plunged 16% to the day’s low of $71.31 per ounce.
What’s driving the ongoing precious metals sell-off?
The sell-off across precious metals was triggered on Friday, after US President Donald Trump nominated Kevin Warsh to lead the Fed, which sent the dollar higher and undercut sentiment among investors who had bet on Trump’s willingness to let the currency weaken.
Traders regard Warsh as the toughest inflation fighter among the final candidates, raising expectations of tighter monetary policy that would underpin the dollar and weaken greenback-priced bullion.
Investors continue to expect one Fed rate cut in June and another later in the year, possibly in October. Apart from the expected hawkish stance from the Fed, the CME margin hike has also supported the sell-off.
CME Group announced hikes in margins on its metal futures on Saturday, with the changes set to take effect after market close on Monday, Reuters reported.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
