The sharp sell-off in precious metals deepened during Friday’s afternoon session, gold and silver futures on the MCX plunging as much as 15% after opening up to 4% lower earlier in the day.
MCX February gold futures slid 9%, or ₹15,000 per 10 grams, to ₹154,157 in afternoon trade. From record highs, the yellow metal has now fallen more than ₹26,600, or 14.7%. Silver prices crashed 15%, or nearly ₹60,000 per kilogram, to ₹339,910 on the MCX, extending the decline from record highs to 23.5%, or about ₹80,000.
Selling pressure was not limited to the domestic market, as US spot gold prices tumbled 7% to below $5,000, while silver slipped below $100, down 2%, after hitting record highs.
What’s behind gold and silver price crash?
The sharp plunge in gold and silver prices today can be largely attributed to profit-taking at higher levels and amid reports that US President Donald Trump intends to nominate Kevin Warsh as the next Fed chair tonight.
Warsh has pushed for a smaller Fed balance sheet, contrasting with Trump’s inclination toward looser monetary policy, a reuters the report stated.
“Today, gold and silver slipped amid continued profit-taking and reports of President Trump’s imminent nomination of inflation hawk Kevin Warsh as next Fed chair tonight. Coupled with this, Trump and Senate Democrats reached a tentative deal to avoid a US government shutdown, weighing on haven assets,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said earlier today that a rebound in the US dollar also triggered aggressive profit-taking.
The US dollar also clawed back some gains after its slide to a four-year low this week, pressuring the precious metals. A stronger US currency makes dollar-priced gold and silver more expensive for overseas buyers.
Moreover, the sharp rally has already pushed some physical buyers to the sidelines, with the World Gold Council noting that central bank purchases moderated in Q4 2025, although strong investor inflows more than offset the slowdown.
More pain ahead, adopt a calibrated approach
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said that gold witnessed sharp selling pressure after margin hikes triggered aggressive profit booking in CME, where prices corrected from the recent peak of $5,500 to near $5,000.
The impact was even more pronounced in MCX, as gold slipped from record highs above ₹1,80,000 to intraday lows near ₹1,55,000, he opined, adding that such elevated volatility is expected to persist for a few more sessions until positions normalize and buyer–seller equilibrium returns.
Technically, CME gold is likely to remain volatile in the $4,800–$5,200 range; a sustained break below $4,800 could open downside towards $4,500, he said. In MCX, gold is expected to oscillate between ₹1,58,000 and ₹1,70,000, with stability returning only once price action consolidates within this broader band, he added.
Sharing investment strategy amid the current volatility, Rajkumar Subramanian, Head – Product & Family Office, PL Wealth, noted that silver remains a volatile metal, with historical annualized volatility often in the 25–35% range, higher than gold, and the sharp run-up increases the risk of near-term corrections.
From an investment perspective, we recommend calibrated, staggered allocations rather than lump-sum deployment to manage entry-point risk while retaining exposure to silver’s longer-term structural drivers, he said.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
