New Delhi witnessed a dramatic plunge in gold and silver prices on Friday, with losses stretching up to 10 percent in a single trading session. The Multi Commodity Exchange (MCX) recorded gold for April 2026 contracts dropping 4.70 percent to 175,307 rupees per 10 grams by 2:16 PM. Silver fared even worse, tumbling 10.77 percent to 356,831 rupees per kilogram for March 2026 contracts.
The weakness extended beyond futures to the spot market. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold shed 6,865 rupees, closing at 168,475 rupees per 10 grams, down from 175,340 rupees. Silver prices nosedived by 22,825 rupees to 357,163 rupees per kilogram from a previous 379,988 rupees.
This sharp correction mirrors global trends, where Comex gold fell 4.07 percent to 5,137 dollars per ounce and silver plunged 9.28 percent to 103 dollars per ounce. Market experts attribute the sell-off to profit-taking after extraordinary gains. Over the past year, gold has delivered over 80 percent returns, while silver has skyrocketed by more than 220 percent, fueled by global uncertainties and US tariff policies under the American president.
The rally has not been without consequences. A recent World Gold Council report warned that record-high prices could dampen jewelry demand in India this year, as consumers balk at elevated costs. Investors who piled into precious metals amid geopolitical tensions are now cashing in, leading to this widespread liquidation.
For bullion traders and jewelers, the sudden drop offers a potential buying opportunity, but volatility remains high. As international markets stabilize, eyes are on upcoming economic data from the US and Fed policy signals that could dictate the next move for these safe-haven assets. This event underscores the cyclical nature of commodity markets, where booms are often followed by sharp corrections.