Gold and Silver Prices Plunge

International market prices of gold and silver prices tumbled sharply on Jan 30 reversing much of their recent gains.

Gold slid $434.45, or 8.15%, while silver fell $29.16, or 25.46%, marking one of the steepest single-day declines for both metals in months.

The drop comes after sustained multi-month rallies that saw gold rise over 90% in the past year and silver climb nearly 265%.

Analysts attribute the sell-off to expectations of higher interest rates and a stronger U.S. dollar, both of which reduce the appeal of non-yielding assets like precious metals.

Equity markets also retreated alongside metals, with major indexes including the S&P 500, Dow Jones, and Nasdaq seeing declines.

Market watchers caution that while this correction is sharp, long-term fundamentals such as inflation hedging and geopolitical uncertainty may continue to support bullion prices.

Investors will now closely monitor Fed policy signals, dollar movements and broader economic indicators for clues on the next phase of the metals market. (Agencies)