Gold and silver prices witnessed a historic collapse in the latest trading session, recording their sharpest intraday percentage fall in decades, triggering intense volatility across domestic and global markets.
Gold prices plunged 11%, marking their biggest intraday percentage decline since 1983, while silver prices crashed a staggering 31%, their steepest single-day fall since 1980.
What happened to gold and silver prices?
On the domestic futures market, silver March 5 contracts slumped to Rs 2,91,922 per kg, down Rs 1,07,971 or nearly 27% in a single session. Gold February 5 futures settled at Rs 1,49,075 per 10 grams, declining by Rs 20,328 or about 12%.
In the international market, COMEX gold fell sharply by $591 to close at $4,763 per ounce, while COMEX silver slid by nearly $36, dropping below the $79 per ounce mark.
Market participants attributed the crash to a violent correction after an extraordinary rally, as precious metals had surged aggressively in recent months, pushing technical indicators deep into overbought territory.
Should investors buy, hold or sell? Experts weigh in
Anil Singhvi, Managing Editor at Zee Business, said the correction was expected after such a steep rally. He noted that investors should remain patient and look for lower levels before fresh buying. According to him, gold could become attractive closer to Rs 1.25 lakh per 10 grams, while silver may offer better entry points around Rs 1.25–1.30 lakh per kg.
Another expert said silver could find interim support between Rs 3 lakh and Rs 3.25 lakh, while gold may stabilise closer to Rs 1.40 lakh, describing the current fall as “natural and healthy” after the rally. Market expert Sumeet Bagadia believes the correction may deepen further. He said gold may need to correct by at least Rs 1 lakh from recent peaks before stabilising, while silver still appears expensive unless it drops into the Rs 2.25–2.50 lakh range.
Sharad Awasthi urged caution, particularly on silver. He said silver’s sharp rallies often see gains wiped out quickly and advised avoiding the metal at current levels. On gold, he prefers waiting for a 25–30% correction before considering fresh exposure.
Highlighting extreme technical conditions, another analyst noted that silver had entered one of its most overbought zones in over a century, making sharp corrections inevitable. A 25% or more decline, he said, is not unusual in such scenarios.
Bottom line
The sharp overnight crash underscores how quickly sentiment can turn in crowded trades. While opinions differ on how deep the correction could go, most experts agree that volatility is likely to remain high, and investors should approach gold and silver with caution in the near term.