MCX Silver Jumps 6% After 46% Crash; India-US Deal Sparks Recovery Hopes

• MCX Silver hit a 6% upper circuit at Rs 2,50,436 per kg on February 3, recovering from a 46% crash.
• Gold prices also rebounded, with MCX gold climbing 3% to Rs 1,48,310 per 10 grams.
• A new India-US trade deal, lowering US tariffs on Indian goods, provided a key macro catalyst for the rebound.
• The earlier crash was triggered by Kevin Warsh's Fed chair nomination strengthening the dollar and CME Group raising margin requirements.
• Experts suggest the drop was a technical correction, with long-term drivers like geopolitical tensions and central bank buying still supporting precious metals.

Why It Matters: MCX Silver and Gold rebounded sharply, fueled by an India-US trade deal and technical corrections.