New Delhi: Gold and silver prices delivered a sharp shock to Indian investors on Friday, tumbling steeply after touching record highs earlier this week and reminding markets how quickly sentiment can turn. Gold fell by nearly Rs 14,000 per 10 grams in a single session, while silver slid about 5%, wiping out a sizeable portion of the gains made during the recent rally.
In domestic markets, gold slipped from levels close to Rs 1,83,000 per 10 grams to around Rs 1,69,000 as traders rushed to book profits after weeks of nonstop gains. Silver too came under heavy selling pressure, falling by nearly Rs 20,000 per kg to trade near Rs 3,84,500. For many households and small investors tracking prices ahead of the wedding season, the speed of the fall came as a surprise.
Market watchers say the correction was driven mainly by profit-booking after prices rose too far, too fast. The rally had been fuelled by global uncertainty, including concerns around trade policies in the US and the broader impact of tariffs, which had pushed investors towards safe assets like gold. As those fears eased and the US dollar strengthened, bullion prices began to lose steam, triggering selling across global markets, including India.
Closer home, nervousness ahead of India’s Union Budget 2026 also added to the volatility. While there has been no direct policy announcement affecting gold or silver so far, traders typically trim positions before the Budget amid speculation around import duties, currency management and fiscal signals. This pre-Budget caution, combined with global cues, added to the pressure on prices.
Once the fall began, technical selling and automated trades kicked in, accelerating the slide within hours. International prices of gold and silver also weakened sharply, pulling down domestic rates further.
Despite the sudden dip, experts point out that gold and silver are still trading well above last year’s levels, supported by long-term demand in India. However, the sharp correction has served as a reminder that even traditional favourites like gold are not immune to global developments and policy expectations, and prices may continue to see sharp swings in the near term.
BI Bureau
