Editor’s Note
The recent sharp decline in gold and silver prices highlights significant volatility in the commodity markets. As experts caution that this trend may persist, investors are advised to exercise prudence and stay informed.
The sudden sharp decline in gold and silver prices has created a stir in the commodity market. Experts believe this volatility could persist for a few more sessions due to profit-booking and heightened volatility. In such a scenario, investors are being advised to tread cautiously.
Gold futures witnessed a sharp decline on Friday. The price of the February delivery gold contract fell by nearly 9% to ₹1,54,157 per 10 grams. Just a day earlier, gold had reached an all-time high of nearly ₹1,80,779 per 10 grams. This means gold traveled from peak to trough in an extremely short time.
The fall in silver was even more startling. While on Thursday, silver prices on MCX had surged to around ₹3,99,893 per kg, the picture changed completely on Friday. Silver with a March 5, 2026 expiry slipped to ₹2,91,922 per kg. This represents a drop of nearly ₹1,07,971 per kg in just one day. The market is now openly calling this a “silver price crash.”
Jatin Trivedi, VP (Research) at LKP Securities, says this decline did not come suddenly. According to him, strong profit-booking was seen in the international market after margins increased on CME, causing gold to slip from its peak of $5,500 to around $5,000.
From a technical perspective, gold on CME could continue to swing in the range of $4,800 to $5,200. If a strong break below $4,800 occurs, the decline could extend to $4,500. Meanwhile, on MCX, gold is expected to move in the range of ₹1,58,000 to ₹1,70,000.
According to a report by Conversation UK, gold and silver prices rose in recent days because uncertainty has increased worldwide. Due to global tensions, fears of trade wars, and confusion over interest rates, investors bought gold and silver as safe-haven options. Central banks’ continuous buying also supported gold.
The reason for the rally in silver was its industrial demand. Increasing use in solar panels, electric vehicles, and the semiconductor sector pushed prices higher. Meanwhile, as prices rose, retail investor buying also accelerated. However, profit-booking began following international news, causing prices to slip and leading to sharp volatility in the market.
Market expert Sumit Bagadia believes that more correction is possible in silver, and prices could fall by at least another ₹1 lakh. Meanwhile, Ashu Madan advises investors to completely exit silver at current levels.
This sharp decline in gold and silver clearly indicates that the market is currently going through a very fragile phase. Until positions normalize and balance returns between buyers and sellers, sharp volatility cannot be ruled out. In such a situation, staying cautious rather than rushing is considered a better strategy for investors.