Silver slumps in biggest single-day fall of year; gold falls
Kolkata : Silver prices recorded the biggest one-day fall since the start of this calendar year, snapping a two-day rebound and marking a sharp retreat from a recent runaway rally. Spot prices of the precious metal crashed by ₹30,000 per kg to ₹2,52,232 on Thursday.
Gold too saw a drop of ₹3,000 per 10 gm to ₹1.53 lakh. Renewed selling pressure returned to the precious metals market as many investors moved to book profits amid heightened volatility. In the short term, analysts expect gold prices to remain weak internationally, consolidating within $4550-$5100 per ounce. Silver is expected to consolidate at $74-$91 per ounce. “This fall in silver price was expected,” said Chirag Sheth, principal consultant, South Asia at Metals Focus, a London-based independent precious metals research firm.
Pullback not Unusual
“It will recover, but it will take some time. Globally, investors have booked profit which is being reflected in the price fall.”
Sheth said “the market tightness for silver continues with silver lying in the vaults of New York not being released in fear that the US president Donald Trump may put some sudden tariff on silver consuming countries.”
He predicted that the “volatility in silver will continue now.” “But for gold, the fundamentals remain strong and we continue to remain bullish about the yellow metal.”
The latest decline in gold prices has sparked fresh demand for the yellow metal from jewellers and investors alike, said Harshad Ajmera, managing director at JJ Gold House. “The craze is more for gold than silver,” he said.
Analysts say the current phase of consolidation is not unusual for precious metals, especially after the recent extended rallies. Instead, such pullbacks often help reset positioning and improve the quality of the next trend, they said.
“Central bank purchases and ETF inflows continue to absorb a significant portion of global gold supply, providing a strong base of long-term demand,” said Vijay Kuppa, CEO of InCred Money. “At the same time, ongoing geopolitical uncertainty and macro risks keep the safe-haven narrative relevant, even if flows ebb in the short run.”
Industry demand outpaces supply
Demand for silver from technology, electronics, and renewable energy continues to outpace supply, causing persistent structural deficits. This has turned silver not only more volatile than gold, but also more sensitive to global growth and energytransition themes.
To be sure, short-term headwinds persist for precious metals. A strong rally in global equities can temporarily reduce safe-haven demand. Additionally, if the US Federal Reserve delays or pauses rate cuts, higher real rates could cap upside in precious metals for a period, according to Kuppa.
Analysts underlined that trying to time the perfect bottom in gold or silver rarely works for investors. Instead, staggered investing or SIPstyle allocations can help average entry prices and reduce timing risk.
Investors should focus less on day-to-day price moves and more on fundamentals like inflation trends, currency weakness, and geopolitical risks, they said.
Gold too saw a drop of ₹3,000 per 10 gm to ₹1.53 lakh. Renewed selling pressure returned to the precious metals market as many investors moved to book profits amid heightened volatility. In the short term, analysts expect gold prices to remain weak internationally, consolidating within $4550-$5100 per ounce. Silver is expected to consolidate at $74-$91 per ounce. “This fall in silver price was expected,” said Chirag Sheth, principal consultant, South Asia at Metals Focus, a London-based independent precious metals research firm.
Pullback not Unusual
“It will recover, but it will take some time. Globally, investors have booked profit which is being reflected in the price fall.”
Sheth said “the market tightness for silver continues with silver lying in the vaults of New York not being released in fear that the US president Donald Trump may put some sudden tariff on silver consuming countries.”
He predicted that the “volatility in silver will continue now.” “But for gold, the fundamentals remain strong and we continue to remain bullish about the yellow metal.”
The latest decline in gold prices has sparked fresh demand for the yellow metal from jewellers and investors alike, said Harshad Ajmera, managing director at JJ Gold House. “The craze is more for gold than silver,” he said.
Analysts say the current phase of consolidation is not unusual for precious metals, especially after the recent extended rallies. Instead, such pullbacks often help reset positioning and improve the quality of the next trend, they said.
“Central bank purchases and ETF inflows continue to absorb a significant portion of global gold supply, providing a strong base of long-term demand,” said Vijay Kuppa, CEO of InCred Money. “At the same time, ongoing geopolitical uncertainty and macro risks keep the safe-haven narrative relevant, even if flows ebb in the short run.”
Industry demand outpaces supply
Demand for silver from technology, electronics, and renewable energy continues to outpace supply, causing persistent structural deficits. This has turned silver not only more volatile than gold, but also more sensitive to global growth and energytransition themes.
To be sure, short-term headwinds persist for precious metals. A strong rally in global equities can temporarily reduce safe-haven demand. Additionally, if the US Federal Reserve delays or pauses rate cuts, higher real rates could cap upside in precious metals for a period, according to Kuppa.
Analysts underlined that trying to time the perfect bottom in gold or silver rarely works for investors. Instead, staggered investing or SIPstyle allocations can help average entry prices and reduce timing risk.
Investors should focus less on day-to-day price moves and more on fundamentals like inflation trends, currency weakness, and geopolitical risks, they said.
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