Gold, Silver ETFs Crash Up to 20% as Futures Plunge: What Should Investors Do?

• Gold and silver ETFs experienced sharp declines, with some silver ETFs crashing 20% and gold ETFs plunging up to 9%.
• Gold futures fell over 7% on MCX, marking a 29% drop from its lifetime high, while silver futures plunged 18%, a 45% drop from its peak.
• The crash is attributed to rampant profit-booking, a stronger dollar, and the nomination of a hawkish US Fed Governor.
• CME Group also increased margins on COMEX gold and silver futures, further impacting prices.
• Analysts suggest the long-term outlook for precious metals remains bullish despite current volatility, advising caution and preferring gold from a risk-reward perspective.

Why It Matters: Precious metal ETFs and futures crashed significantly due to profit-booking and policy changes; investors should be cautious.