Gold Slips, Silver Sinks in Sudden Market Reversal

India’s precious metals market is navigating one of its most dramatic corrections in recent memory, with silver and gold prices sliding sharply after hitting record highs. On the Multi Commodity Exchange (MCX), silver which had soared above ₹4 lakh per kilogram in late January has dipped back toward around ₹3 lakh per kg after intense selling pressure and profit-booking by traders. Meanwhile, 24-carat gold has fallen below ₹1.5 lakh per 10 grams , with 22-carat and 18-carat variants also sharply lower, reflecting broad weakness in the bullion complex.

The sell-off in precious metals is being driven by a potent mix of global and domestic factors . On the global front, a stronger US dollar has reduced the appeal of dollar-priced bullion, while commodity exchanges such as the Chicago Mercantile Exchange (CME) have raised trading margins on gold and silver futures, exacerbating declines as leveraged positions were unwound. Additionally, speculation around US monetary policy including expectations of tighter conditions as the Federal Reserve’s leadership outlook evolves has dampened safe-haven demand .

Domestically, the recent Union Budget 2026–27 did not change import duties on gold or silver , removing an anticipated catalyst that many analysts had hoped would support prices. This absence of policy support, combined with overextended prices after months of gains, encouraged investors to lock in profits, further accelerating the downturn. Retail buyers have responded cautiously to the uncertainty, delaying purchases in hopes of further price drops.

Despite the current volatility, several global financial institutions maintain that the long-term bullish case for gold remains intact , underpinned by robust central bank demand and investor diversification needs. Silver’s outlook is somewhat more nuanced, given its dual role as both an industrial and investment metal, but structural demand trends continue to support its medium- to long-term prospects.