Gold and silver prices, which surged to record highs at the start of the new year, are now easing steadily, offering some relief to buyers while creating anxiety among recent investors. After moving far beyond the reach of common consumers in January, bullion prices have begun to cool over the past week, signalling a sharp shift in market momentum.
Sharp Correction After Record Highs
Within just seven days, silver prices witnessed a steep fall, dropping by ₹1.45 lakh per kilogram. Gold also corrected sharply, with prices falling by ₹26,500 per tola during the same period. Compared to gold, the decline in silver has been far steeper, causing concern among those who invested when prices touched record levels.
On Friday, the bullion market recorded a notable dip in gold rates. The price of 24-carat gold fell by ₹2,070 to settle at ₹1,52,350 per 10 grams. Similarly, 22-carat gold dropped by ₹1,900 and now trades at ₹1,39,650 per 10 grams. These corrections mark a significant retreat from the all-time highs seen earlier this year.
Silver Sees Heavy Selling Pressure
Silver prices continued their downward slide, posting another major fall on Friday. The rate of silver dropped by ₹20,000 per kilogram to reach ₹2.80 lakh. Notably, silver had touched a historic peak of ₹4.25 lakh per kilogram on January 29. Since then, prices have fallen sharply by ₹1.45 lakh in a short span, highlighting intense volatility in the precious metals market.
As a result, investors who entered the market at elevated levels now face mounting pressure. The rapid swings in prices over the past week have added to uncertainty, especially among retail investors.
What Experts Say About the Outlook
Despite the recent decline, global brokerage firm UBS has advised investors not to panic. According to UBS, the current correction appears temporary rather than structural. The firm believes that gold prices still hold strong long-term potential, supported by global economic factors and investor demand.
UBS projects that gold could climb to around $6,200 per ounce within the next five months. This would represent an upside of nearly 25 per cent from current levels. In contrast, UBS expects silver prices to remain under pressure for a while longer, noting that a sustained recovery in silver may take additional time.
For now, market participants continue to watch global cues closely, as bullion prices remain highly sensitive to international trends and investor sentiment.
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