Precious metals witnessed a sharp sell-off on February 2, extending losses for the third straight session, with platinum and palladium joining gold and silver in a deep rout. Prices, which had touched record or multi-year highs in recent weeks, are now hovering near multi-month lows as investors rushed to exit positions.
The sell-off gathered pace after Donald Trump nominated Kevin Warsh as the next chair of the US Federal Reserve, triggering expectations of a tighter monetary policy stance and a stronger dollar.
Despite ongoing geopolitical tensions, trade worries and policy uncertainty in Washington, investors appeared to accelerate profit booking across the precious metals space.
Apart from gold and silver, platinum faced intense pressure in Monday’s session. Spot platinum prices fell another 14 percent intraday to a low of $1,858 per troy ounce, extending the metal’s losing streak to three days.
Taking Monday’s low into account:
Platinum has lost about 30 percent in just three trading sessions
It is down nearly $1,027, or 35.6 percent, from its recent peak of $2,885
Palladium has also corrected sharply, sliding around 31 percent from its recent record highs.
Platinum and palladium are widely used in automotive catalytic converters. Both metals had delivered exceptional gains in 2025 due to tight supply conditions, tariff-related uncertainties and a shift in investor interest away from gold.
Spot platinum ended 2025 up 126 percent, its biggest annual rise since at least 1987, and nearly double gold’s rally. Palladium closed the year with an 81 percent gain.
Gold prices continued to slide after Friday’s historic crash. On MCX, February gold futures fell another ₹5,152, or 3.6 percent, on Monday to touch an intraday low of ₹1,37,065 per 10 grams.
This followed a fall of ₹7,436 per 10 grams in the previous session. Overall:
Gold prices are down ₹43,714 per 10 grams
This marks a 25 percent fall from the recent peak of ₹1,80,779
During Friday’s session, MCX gold had plunged nearly ₹20,000 per 10 grams to ₹1,49,653, marking one of the biggest single-day falls in recent history.
Before the crash, gold had risen nearly 25 percent since the beginning of January. The sell-off has wiped out most of those gains, although the metal still remains on an eight-month winning streak.
Silver prices have seen the steepest correction. MCX silver March futures fell another ₹40,000 per kilogram intraday on Monday, touching a low of ₹2,25,805.
This came after a ₹26,273 fall during the special trading session on Sunday, February 1.
Silver has dropped ₹1,94,243, or 46 percent, in just three sessions
The fall is from Thursday’s peak of ₹4,20,048
In the international market, spot silver prices plunged 16 percent to a low of $71.31 per ounce.
The sharp decline across precious metals began on Friday after Kevin Warsh’s nomination to lead the US Federal Reserve.
Traders view Warsh as one of the most aggressive inflation fighters among the shortlisted candidates. His appointment has strengthened expectations of tighter monetary policy, supporting the US dollar and reducing the appeal of dollar-priced commodities such as gold and silver.
In addition to Fed-related concerns, recent margin hikes by the CME Group on precious metals contracts have forced traders to cut leveraged positions, further intensifying the sell-off.
Markets continue to price in one US rate cut in June and another later in the year, possibly in October, but near-term sentiment remains fragile as investors reassess risks across global asset classes.
CME Group announced hikes in margins on its metal futures on Saturday, with the changes set to take effect after market close on Monday.