Gold and silver prices today witnessed a sharp decline on Wednesday after hitting record high levels in the Multi Commodity Exchange (MCX). After several days of strong rally, both precious metals came under heavy selling pressure as investors booked profits at higher levels.
Silver Sees Sharpest Fall After Record High
On Wednesday evening around 7:25 PM, silver prices on MCX fell sharply by ₹9,696 or 3.74%, settling at ₹2,49,115 per kilogram. Earlier in the day, silver had touched its all-time high of ₹2,59,692 per kg, triggering large-scale profit booking.
Market experts believe the sudden fall is mainly due to aggressive profit-taking by investors, as silver prices were trading at extremely elevated levels.
Gold Prices Also Decline Significantly
Gold prices also witnessed a notable decline. On Wednesday, gold fell by ₹1,332, trading at ₹1,37,751 per 10 grams on MCX. The record high for gold stands at ₹1,40,465 per 10 grams.
For the February 5 futures contract, gold prices dropped nearly 1%, indicating selling pressure after recent highs.
Why Did Gold and Silver Prices Fall?
According to experts, both gold and silver are currently trading close to their historic peaks, making short-term corrections natural.
Key reasons behind the fall include:
- Massive profit booking after a strong rally
- Silver delivering over 150% returns in one year
- Gold rising nearly 75% in the same period
- High prices discouraging fresh retail buying
Experts warn that at such elevated levels, investors should remain cautious, especially in the short term.
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Long-Term Outlook Remains Strong
Despite the short-term correction, analysts remain optimistic about the long-term prospects of gold and silver. Many banks and market experts expect precious metals to remain strong in 2026, either holding higher support levels or possibly touching new highs if global uncertainties persist.
Some experts even suggest that price dips could be good buying opportunities for long-term investors.
How Can Investors Invest Safely?
Experts recommend digital investment options instead of physical buying at high prices. Investors can consider:
- Gold ETFs
- Silver ETFs
- Gold & Silver Mutual Funds
Systematic investments such as monthly or weekly SIPs can help reduce risk during volatility while benefiting from long-term growth.
Investor Concerns Rising
The recent fall has raised concerns among investors, especially after silver touched record highs. Many fear that further corrections could lead to losses. Given the sharp rise over the past year, experts advise avoiding lump-sum investments and focusing on disciplined, staggered investing.
While gold and silver prices have corrected sharply after touching record highs, experts believe the fundamental demand remains strong. Short-term volatility is expected, but long-term investors may still find value—provided they invest wisely and stay cautious.
Yogesh Kolhe is a market and business news author with a focus on the automobile sector and gold and silver price movements, offering readers practical insights into industry and market trends.
