Silver bore the brunt of the carnage, logging its worst single-day fall since 1980. Globally, spot silver on COMEX plunged about 30% over two sessions, while spot gold declined nearly 13%, underscoring the scale of the unwind.
Gold and silver have returned to centre stage as traders reassess price trends after week’s brutal sell-off rattled the commodities market. The sharp correction has left investors edgy, especially with the Multi Commodity Exchange (MCX) holding a special Sunday trading session alongside the presentation of Union Budget 2026 in Parliament.
Precious metals, which until late January were scaling fresh lifetime highs on MCX, saw that rally unravel abruptly on January 30. What followed was one of the steepest corrections in decades.
Silver bore the brunt of the carnage, logging its worst single-day fall since 1980. Globally, spot silver on COMEX plunged about 30% over two sessions, while spot gold declined nearly 13%, underscoring the scale of the unwind.
On Friday, April gold futures on MCX tumbled nearly 9% to Rs 1,67,406 per 10 grams — a dramatic reversal from the previous session’s record high of Rs 1,93,096, translating into a 13% single-session slide from the top. Silver futures for March expiry fell even more sharply, dropping close to 17% to Rs 3,32,002 per kg and extending total losses to nearly 21% from recent highs.
Markets began pricing in a more hawkish US Federal Reserve stance after US President Donald Trump named Kevin Warsh as the new Fed Chair. The prospect of tighter monetary policy, coupled with a strengthening US dollar, dented the appeal of non-yielding safe-haven assets such as gold and silver.
Profit booking amplified the fall, as investors rushed to lock in gains following the sharp run-up in prices. Adding to the pressure were higher trading margins imposed by overseas exchanges, forcing leveraged traders to cut positions and accelerating the slide.
With Budget Day volatility now in play, the key question for bullion traders is whether the worst of the correction is over or if further downside awaits.
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