Gold, Silver ETFs Crash Up to 20%: Investors Panicked Amidst Market Volatility

• Gold and silver ETFs experienced significant declines on February 2nd, with some silver ETFs falling by up to 20%.
• MCX gold futures for April expiry dropped by approximately 3% to 1,43,335 rupees per 10 grams, a 26% decline from its record high.
• Silver futures for March expiry plummeted by 6% to 2,49,713 rupees per kilogram, marking a 41% decrease from its record high.
• Major gold ETFs like Birla Sun Life and Motilal Oswal saw over 9% decline, while ICICI Prudential and Mirae Asset Gold ETFs fell by about 8%.
• Reasons for the crash include a strengthening US dollar, profit-booking, hawkish news, and increased margins for metal futures by CME Group.

Why It Matters: Gold and silver ETFs crashed significantly due to market volatility, US dollar strength, and increased margins.