Buy now or hold? Gold price falls below Rs 1.5 lakh, silver price drops sharply; Anil Singhvi says correction may continue

Gold and silver prices witnessed a sharp correction in domestic commodity markets, with gold slipping below the Rs 1.5 lakh per 10 grams mark and silver falling steeply after the recent record rally triggered heavy profit booking across global bullion markets. The drop came after heavy selling in the previous session, when traders hurried to lock in profits following the sharp rally in January. Many retail investors, who had entered the bullion market at higher prices hoping the upward trend would continue, were taken by surprise. On the Multi Commodity Exchange (MCX), gold futures were last seen near Rs 1,49,075 per 10 grams, significantly lower than recent highs, while silver futures dropped to around Rs 2.9 lakh per kilogram, reflecting the sharp unwinding of bullish positions.

The sudden fall has revived debate among investors about whether bullion prices have merely cooled off after an overheated rally or whether further downside remains.

Why gold and silver prices corrected?

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Market participants say both metals had climbed too fast in a short period, pushing prices into overbought territory. As soon as prices started to dip, traders rushed to book their profits, triggering a wave of selling. At the same time, a stronger US dollar and rising bond yields made non-interest-bearing assets like gold and silver less attractive.

The pressure grew further as leveraged positions taken during the rally were unwound. Silver typically witnesses sharper price swings than gold because of its smaller market size and higher speculative participation, which explains why the fall appeared more dramatic in the white metal.

Gold Sees Sharpest Drop Since 1983

Gold prices tumbled on Friday, marking their steepest single-day decline since 1983, following US President Donald Trump’s announcement of his nominee for the Federal Reserve chair. Silver also faced intense selling pressure, plunging nearly 30% and heading for its worst day ever. On the international front, COMEX gold fell by $591, closing at $4,763, while COMEX silver slid about $36, dipping below the $79 level.

Anil Singhvi says correction after rally is normal

Market expert Anil Singhvi described the recent fall as a natural correction after the sharp rally seen in precious metals. He said investors should avoid panic selling during volatile phases and instead wait for prices to stabilise before considering fresh positions. According to Singhvi, price swings may continue in the near term as markets digest recent global developments.

Can prices fall further from here?

Analysts are divided on what comes next for gold and silver. The long-term outlook, looks solid. For now, experts say investors should tread carefully and resist the urge to jump in while markets remain volatile. Rather than rushing to buy on the dip, a gradual approach after the market stabilises is generally considered safer.