Gold, Silver Prices See Sharp Correction After Record Rally; Experts Call It a Healthy Pullback
New Delhi: After weeks of a record-breaking rally, gold and silver prices saw a steep correction on Friday on the Multi Commodity Exchange (MCX), as investors booked profits amid easing global tensions.
Gold futures (24 kt) on MCX, which had recently touched an all-time high of ₹1,32,294 per 10 grams, dropped nearly 3% to ₹1,25,957 per 10 grams. Silver saw a deeper cut of over 8%, falling from ₹1,70,415 to ₹1,53,929 per kg.
Market analysts described the fall as a natural correction following an extraordinary surge driven by geopolitical and economic uncertainties.
Banking and market expert Ajay Bagga termed the decline a “necessary tactical retreat,” saying it was fueled by short-term sentiment shifts and profit-taking. “One major factor was the softer tone from U.S. President Donald Trump on proposed tariffs against China, which helped ease global jitters,” Bagga said.
He added that the long-term case for gold and silver remains robust, citing structural factors such as global de-dollarization, persistent silver supply deficits, central bank buying, and a backdrop of low real interest rates and high geopolitical risks. “Investors should see this dip as an opportunity to build long-term positions,” he advised.
Bagga also noted that silver’s outlook remains even stronger than gold’s due to its dual role as both a precious and industrial metal.
Echoing similar views, Ajay Kedia, Founder and Director of Kedia Commodities, said the correction was long overdue. “After a parabolic rise over the past two months, a pullback was expected. Technical indicators showed the market was heavily overbought,” he said.
Kedia attributed the decline to profit-booking and optimism surrounding upcoming talks between the U.S. and China, as well as peace discussions involving Russia. “These developments reduced safe-haven demand and triggered selling pressure,” he explained.
However, Kedia stressed that the drop doesn’t signal a long-term reversal. “This is the first major dip in eight weeks. The next few sessions will be crucial,” he said. He added that while buyers may continue purchasing gold and silver for Dhanteras, those seeking short-term returns should tread carefully.
Despite the volatility, both experts agreed that the broader uptrend in precious metals remains intact, with the current correction seen as part of a normal market cycle following a historic rally.
