Gold and silver prices fell by around 2 per cent on Tuesday, ending a two-day rising streak, primarily due to profit booking. In early Asian trading hours, gold declined by 0.70 per cent per ounce, and silver dropped by 1.94 per cent per ounce.
Gold prices have retreated more than 11.27 per cent after reaching a record high of $5,608.25 on January 29. Silver has corrected by over 50 per cent from its all-time peak of $121.64.
According to market reports, the decline in precious metals stems from speculative activity, including easing geopolitical tensions, sustained central bank purchases, and investors shifting away from sovereign bonds and currencies— factors expected to continue influencing trends in the coming weeks.
Major Banks and asset managers, including Deutsche Bank AG and Goldman Sachs Group Inc., anticipate a rebound in bullion prices driven by persistent demand, although volatility linked to US President Donald Trump’s policies remains a key factor.
Gold prices have been supported by the Chinese Central Bank’s buying spree, which has continued uninterrupted for more than 15 consecutive months.
Upcoming economic indicators this week are expected to offer clues about the Federal Reserve’s policy direction, particularly following President Trump’s nomination of the next Fed chair.
The US labour report, due on Wednesday, is likely to reflect a stabilising labour market, while key inflation data will be released on Friday.
“The correction in precious metals has largely been driven by profit-taking and shifting macro expectations, including a perceived pause in the US Federal Reserve’s easing cycle,” said Rochan Pattnayak, Chief Investment Officer at Choice AMC Limited.
He added that the Federal Reserve is widely expected to hold interest rates steady after three consecutive cuts since September 2025.
This change in policy outlook has contributed to gold prices retreating by 2–8 per cent from recent highs, followed by a modest rebound over the past week.
Also read: Silver surges to ₹2.72 lakh on firm global trends
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