Today, gold prices fell sharply and suddenly, by more than 5%. This was the biggest drop in a single day since 2013. This sharp drop ended a record-breaking rally earlier this week. At that time, gold briefly reached an all-time high of over $4,380 per ounce. Silver prices also fell sharply, by about 7%, indicating that investors were selling off precious metals in large numbers as their feelings changed.
After months of rising prices caused by geopolitical tensions, hopes of U.S. interest rate cuts, and strong demand from central banks, investors took a step back to lock in profits. The rise of the U.S. dollar put even more pressure on gold prices. This made it harder for people from other countries to buy it. As a result, gold fell from highs of around $4,375 to below $4,080 per ounce on the global spot market. Silver also fell below $50 for the first time since its recent rally.
The sharp drop also had a big effect on Indian gold prices. The price of 24-carat gold fell by Rs. 3,380 per 10 grams to Rs. 1,27,200. Moreover, the price of 22-carat gold fell by Rs. 3,100 per 10 grams to Rs. 1,16,600. The silver market was also volatile. Changes in the availability of metals globally and investors’ renewed appetite for risk particularly affected it.
Market experts say this drop is a technical correction after a record-breaking rally. They attribute it to people taking profits and a slight easing in demand for safe havens. Even though prices have dropped sharply, analysts are still cautiously optimistic. Some think that gold prices could rise again. They expect it might reach $5,000 by mid-2026, due to ongoing global economic uncertainty and geopolitical risks.
This sudden change in the market is a reminder of how unstable precious metals can be. This is especially true when investors are dealing with worries about inflation, U.S.-China trade relations, and central bank policies.
As the market adjusts after this unprecedented drop in prices in just one day, keep an eye out for more news about gold and silver prices.
