Gold has declined about 16% to nearly ₹1.51 lakh per 10 grams from its recent highs, while silver has crashed around 38% from close to ₹3.8 lakh to about ₹2.34 lakh per kg. The correction, instead of triggering a rush to jewellery stores, has led to cautious sentiment as buyers expect prices to soften further before making purchases.
In the physical bullion market, gold in Delhi was quoted at around ₹1.57 lakh per 10 grams, down about 1.4%, while silver slipped over 2% to nearly ₹2.45 lakh per kg. Futures on the Multi Commodity Exchange (MCX) also mirrored the weak trend, reflecting subdued participation from both retail investors and traders.
Jewellers across major cities have reported low footfall despite the price drop. According to trade sources, customers are tracking the market closely but postponing purchases in the hope of a deeper correction. The sharp volatility seen after months of record-breaking rallies has made buyers cautious and more price-sensitive.
The fall in domestic prices follows weak global cues. A stronger US dollar, profit-booking after the earlier surge, easing geopolitical tensions and thin Asian market volumes have reduced the safe-haven demand for precious metals. These factors have collectively put pressure on bullion rates.
Analysts believe the current decline comes after an extraordinary rally through 2025 and early 2026, when both gold and silver scaled historic highs. The ongoing slide is being viewed as a phase of consolidation rather than a long-term reversal.