After hitting record highs, gold and silver prices are now experiencing a sharp decline. Heavy selling has been recorded in precious metals over the past two days. Silver prices on the Multi Commodity Exchange (MCX) have fallen to nearly ₹18,000 per kg, while gold has also fallen by ₹1,600 to ₹1,800 per 10 grams.

Significant Fall in Silver on MCX

On Thursday, January 8, the price of 1 kg of silver on MCX fell by nearly ₹9,000 to trade around ₹2.41 lakh. The previous day, silver prices had also fallen by more than ₹9,000. It's worth noting that just a few days ago, silver had hit a record high of ₹2.59 lakh per kg, but then began a sharp decline.

Gold prices also fell

Regarding gold, the price of 10 grams of gold on MCX also fell by nearly ₹1,000 on Thursday, trading around ₹1.37 lakh. Gold prices have fallen by a total of ₹1,800 in the past two days.

Why are gold and silver prices falling?

According to experts, the biggest reason for this decline in gold and silver prices is profit-booking. After reaching record highs, investors began booking profits, putting pressure on prices.

Furthermore, the delay in a trade deal between India and the US and former US President Donald Trump's support for a proposal to impose 500% tariffs on India, China, and Brazil have also weakened market sentiment. These developments led to a strengthening of the dollar index, which directly impacted gold and silver prices.

Weakness in Gold and Silver ETFs

The decline in precious metals is also clearly visible in gold and silver ETFs. Silver ETFs have fallen by approximately 5 to 6 percent in recent days, while gold ETFs have also declined by approximately 1 percent. Meanwhile, the Indian stock market has also seen pressure due to tariff-related uncertainties.

What are the warning signs for investors?

Market experts say that new investors should exercise caution in the current situation. Until global markets stabilize and the picture regarding trade policy becomes clearer, gold and silver prices may remain volatile.