Silver Drops Over Rs 5,000, Gold Slides Rs 1,100 After Sharp Rally: Latest Rates Explained

After several sessions of strong gains, gold and silver prices witnessed a sharp correction on Wednesday, with both precious metals slipping in domestic as well as global markets. The decline came as investors booked profits following a powerful rally that pushed prices to record and near-record levels in recent weeks.

On the domestic front, silver registered the steeper fall. Prices on the Multi Commodity Exchange (MCX) dropped by more than Rs 5,000 per kilogram, marking a decline of around 2.25 per cent. At the time of trading, silver was hovering near Rs 2,53,100 per kg, retreating from the historic highs it had scaled earlier in the week. The metal had delivered exceptional returns through 2025 and into early 2026, supported by strong investor participation and rising global demand.

Despite the sharp pullback, market experts believe silver’s broader structure remains positive. Ponmudi R noted that silver continues to trade within a bullish channel, with every correction attracting buying interest. According to him, holding above the Rs 2,55,000 level is crucial to maintaining upside momentum. He added that sustained strength above Rs 2,59,000 could push silver toward the Rs 2,64,000–Rs 2,75,000 range, while the Rs 2,55,000–Rs 2,52,000 zone may act as an accumulation area for long-term investors.

Gold prices also softened alongside silver. On MCX, gold slipped by over Rs 1,100 per 10 grams, translating into a fall of about 0.8 per cent. The yellow metal was trading near Rs 1,37,900 per 10 grams after touching fresh highs earlier in the week. The correction followed a sustained rally driven by safe-haven demand, central bank buying, and global uncertainty.

Ponmudi R said that gold continues to trade in an overall uptrend despite the current decline. He highlighted that gold is maintaining a pattern of higher highs and higher lows within a rising channel. According to him, the Rs 1,37,000–Rs 1,38,000 range remains a preferred accumulation zone, with the broader trend still favouring a buy-on-dips approach.

The weakness was also visible in international markets. In early Asian trade, spot gold slipped around 0.7 per cent to $4,466 per ounce after hitting a record high late last month. Global silver prices fell about 1.2 per cent to nearly $80 per ounce, retreating from all-time highs reached in December. Despite the recent dip, silver ended 2025 with gains of around 147 per cent, making it one of its strongest years on record.

Looking ahead to 2026, analysts remain constructive on both metals, even as short-term volatility persists. According to InCred Money, the medium- to long-term outlook for gold and silver remains supportive. The firm cited continued central bank purchases and ETF inflows as key factors underpinning gold prices, while strong industrial demand and supply constraints continue to favour silver.

Experts caution, however, that after such an extended rally, phases of consolidation and pullbacks are natural. For investors, the recent correction is being viewed not as a trend reversal, but as a pause that could offer opportunities to accumulate precious metals at lower levels amid ongoing global uncertainty.