New Delhi: Gold and silver prices suffered a steep correction, snapping their recent rally just days ahead of the Union Budget.
In a single day, silver prices crashed by nearly ₹93,000, while gold also witnessed a significant drop, rattling bullion markets.
The price of 24-carat gold fell by around ₹8,000 per 10 grams, while silver slipped by about ₹15,000 per kilogram during Friday’s trade.
The fall comes after both metals had climbed close to record levels, with silver nearing ₹4.20 lakh per kg and gold approaching the ₹2 lakh mark.
Global Signals Add Pressure
The downturn aligns with recent assessments by the World Gold Council (WGC), which has flagged heightened volatility in precious metals despite strong long-term demand.
According to WGC data, global gold demand crossed the 5,000-tonne mark in 2025, driven by geopolitical tensions, inflation concerns, and investor preference for safe-haven assets.
However, the Council has also cautioned that price corrections are likely in the near term, especially as markets react to changing global financial conditions.
Outlook Remains Uncertain
In its outlook for 2026, the WGC has indicated that while structural demand for gold remains intact, prices could face intermittent pressure due to shifting interest rate expectations, a firm US dollar, and evolving macroeconomic data.
Market analysts say the latest fall reflects aggressive profit-taking after the sharp run-up in prices over the past few weeks.
The strengthening dollar index and anticipation around key policy announcements have further weighed on bullion prices.
What Lies Ahead
The sharp slide suggests that bullion markets are entering a phase of heightened volatility, where short-term movements are being dictated more by global economic signals than by underlying demand.
While institutions like the World Gold Council continue to project long-term resilience in gold demand, experts warn that near-term fluctuations may persist, keeping investors on edge in the days leading up to the Budget.
