Gold, Silver ETFs Rebound Up to 10% After Crash: What's Next for Precious Metals?

• Gold and silver ETFs saw a significant rebound on February 3, recovering up to 10% after a recent massive crash.
• Analysts suggest the sharp drop was a technical correction, not a fundamental deterioration, with long-term drivers remaining intact.
• Gold futures (March expiry) jumped nearly 4% to Rs 1.5 lakh per 10 grams, while silver futures (March expiry) rallied almost 9% to Rs 2,57,480 per 10 grams.
• The previous crash was attributed to CME Group hiking margin requirements, forcing liquidation, and reports of a hawkish Federal Reserve Chair nomination.
• Rising expectations for at least two rate cuts by the American Federal Reserve this year are also contributing to the current rebound.

Why It Matters: Precious metals and their ETFs are rebounding strongly, driven by technical corrections and rate cut expectations.