New Delhi, Feb. 2 -- Gold and silver prices are undergoing a deep correction due to hectic profit booking amid an increase in CME precious metals margin requirements, the dollar's rise, and easing geopolitical tensions. Stellar gains since last year drove gold and silver rates to unprecedented levels, causing demand fatigue and profit booking.

Gold rate on MCX (February futures) has crashed by over Rs.47,000, or 26%, per 10 grams from its peak. On the other hand, MCX silver March futures have seen a massive drop of Rs.1.94 lakh, or over 46%, from their peak.

The main trigger behind the sharp sell-off in gold and silver prices is concerns over hikes in margin requirements by the CME, which experts fear will reduce liquidity and dampen sp...