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Gold and Silver Recoil From Records as Dollar Rebounds and Fed Speculation Mounts

Profit-taking after parabolic gains exposed fragile liquidity across metals markets.

Overview

  • Gold fell back below roughly $5,300 after briefly topping about $5,600 per ounce, while silver slid from above $120 to near $106–$110 in an exceptionally volatile session.
  • The pullback followed a rebound in the U.S. dollar and market chatter that a more hawkish Federal Reserve chair could be named, with Reuters citing rumors around Kevin Warsh.
  • Indian markets mirrored the reversal as MCX futures retreated from new peaks and precious‑metal ETFs in India dropped as much as 14% after Thursday’s surge.
  • Despite the correction, gold remains up more than 20% in January for its strongest month since 1980, and silver is on track for a gain of roughly 50%–56% for its best month on record.
  • Analysts flagged thinning liquidity and self‑reinforcing volatility as key risks, with attention turning to upcoming U.S. policy and inflation signals after a tech‑led equity selloff.