In a stunning reversal, India’s precious metals market cratered on Friday as gold and silver prices fell sharply by up to 10 percent. Trading on the MCX showed April 2026 gold contracts declining 4.70 percent to 175,307 rupees for 10 grams around mid-afternoon. Silver’s March 2026 contract suffered a steeper 10.77 percent drop to 356,831 rupees per kilogram.
Spot prices told a similar story of distress. IBJA data at noon pegged 24-carat gold at 168,475 rupees per 10 grams after a 6,865-rupee cut from 175,340 rupees. Silver wholesale prices collapsed 22,825 rupees to 357,163 rupees per kilogram, previously at 379,988 rupees.
Global cues drove the domestic rout. On Comex, gold eased 4.07 percent to 5,137 dollars per ounce, with silver slumping 9.28 percent to 103 dollars. Analysts point to rampant profit-booking after phenomenal yearly performances: gold up over 80 percent and silver surging more than 220 percent amid rising global instability and US presidential tariff announcements.
The World Gold Council’s latest insights highlight a downside risk, predicting softer jewelry sales in India due to prohibitive price levels this year. This sell-off comes after a prolonged bull run that attracted retail and institutional investors seeking hedges against inflation and uncertainty.
Jewelers across major cities reported frantic buying interest post-dip, but caution prevails. With macroeconomic indicators like US jobs data and interest rate trajectories looming, precious metals could see renewed volatility. This episode serves as a reminder for investors to balance portfolios amid such extreme swings in commodity prices.
