In a post on microblogging site X on Friday, Dharamshi said: “Near vertical rise in bullion is done. It’s taken every short to the cleaners. Bullion going down is beyond the imagination of most people sold on the narrative. But nothing, absolutely nothing, can sustain the pace and vertical rise that we saw in gold and silver. Time to take some money off the table. Might still not be the ultimate top.”
His remarks echoed the violent reversal seen across domestic and global markets, where investors rushed to book profits after an extraordinary rally that had propelled both metals to historic highs.
The broader Metal index dropped 4%, ending a three-session gaining streak during which it had risen 8.5%. The decline tracked a sharp retreat in gold and other base metals after their recent surge, while a firmer dollar added further pressure on commodity prices.
ETFs reel as profit-taking sets in
Silver and gold ETFs in India slumped as much as 14% on Friday. Zerodha Silver ETF and SBI Silver ETF crashed 14%, Nippon India Silver ETF fell 14%, while Kotak Silver ETF dropped 12%. Gold ETFs were not spared: Nippon India Gold ETF slid 10%, ICICI Prudential Gold ETF declined 6%, and ICICI Prudential Silver ETF fell 7%.
The sell-off followed a month of exceptional gains. Silver had surged 56% in January, putting it on track for its best-ever monthly performance, while gold recorded its largest monthly advance since January 1980, rising more than 20% in USD terms.
Link to post: https://x.com/ravidharamshi77/status/2016900599938502842
Global trigger: Fed speculation and a stronger dollar
The domestic rout mirrored sharp losses overseas. Spot silver dropped 5.7% to $109.55 an ounce after hitting a record $121.64 on Thursday. Spot gold fell 3.9% to $5,183.21 an ounce, after earlier sliding as much as 5% from Thursday’s peak of $5,594.82.The reversal was triggered after U.S. President Donald Trump said he would announce his pick to replace Federal Reserve chair Jerome Powell on Friday, with reports pointing to former Fed governor Kevin Warsh as the likely choice. The prospect of a less dovish Fed leadership rattled investors who had piled into bullion on expectations of accommodative monetary policy.
The dollar index rose 0.4% to 96.60, trimming its weekly decline to 0.9%. The greenback strengthened 0.7% against the Swiss franc to 0.7699, adding pressure on dollar-denominated precious metals.
Also read: Explained: Why gold, silver ETFs crashed up to 14% and should you buy the dip?
While the speed and scale of the correction have shaken confidence, Dharamshi’s comments suggest the move should be seen less as a collapse and more as a necessary pause after an unsustainable run. His warning that it may “still not be the ultimate top” underlines the uncertainty facing investors as they weigh whether the latest slide marks a deeper turning point or simply a brutal bout of profit-taking at elevated levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)