Due to the Gold and Silver Price Crash, silver fell by ₹85,000 and gold by ₹25,500 in 24 hours. Learn the reasons for the decline and what the future trend will be.
New Delhi: The country’s bullion market witnessed a shockwave on Friday that stunned investors. The prices of gold and silver, which had been setting records for the past few weeks, suddenly plummeted. In just 24 hours, silver fell by nearly ₹85,000 per kilogram from its all-time high, while gold also registered a massive drop of more than ₹25,500.
In a market that was experiencing tremendous growth just a few days ago, this sudden decline has fueled discussions about a “bubble bursting.”
Silver Plummets to ₹3.35 Lakh on MCX
On MCX, the price of one kilogram of silver for March futures fell to ₹3,35,001 by around 3:30 PM on Friday. It is noteworthy that just one day earlier, silver had reached an all-time high of ₹4,20,048.
This means that in just one trading session, investors suffered losses not in thousands, but in tens of thousands of rupees.
Price Plunges Directly from Record High to ₹1.67 Lakh
It wasn’t just silver gold’s situation was no different. On January 29, gold reached a record high of ₹1,93,096. But on Friday, due to heavy selling, the price slipped to ₹1,67,406.
Thus, a massive drop of nearly ₹25,500 was recorded in gold in a single day, leaving many investors with no time to react.
Why did Gold and Silver Prices Crash? Here are 5 Major Reasons
According to market experts, several factors are responsible for this sharp decline:
1. Profit Booking
After a prolonged rally, investors started booking profits on a large scale.
2. Increased Short Selling
Large traders, especially in silver, took short positions, which accelerated the decline.
3. Weakness in International Metal Prices
Both silver price today and gold rate international witnessed pressure in global markets.
4. Stronger Dollar Index
The strengthening US dollar diminished the appeal of safe-haven assets like gold and silver.
5. Federal Reserve Signals
Statements from the US Fed regarding interest rates also had a negative impact on the precious metals market.
ETF Investors also hit hard
This decline directly impacted the ETF market as well. By the end of trading, several Silver and Gold ETFs saw a drop of more than 20%.
ICICI Silver ETF: Approximately 20% decline
Nippon India Silver ETF: Under heavy pressure
Tata Silver ETF: Sharp fall
Gold ETFs also suffered significant losses for investors
This means that those who invested digitally or through ETFs were also affected.
Is this just a correction or the beginning of a downturn?
Now the biggest question is whether this is just a short-term correction or a sign of a long-term downturn in precious metals.
Analysts believe that market volatility may continue. If global indicators remain weak and the dollar strengthens, further pressure on gold and silver prices is possible. However, for long-term investors, this decline could also prove to be a buying opportunity – but careful consideration is necessary.