Gold and Silver Extend Losses; Short-Term Weakness Likely to Persist

Gold and silver prices in India continued their slide for the third straight session, extending the correction that began after hitting record highs ahead of Dhanteras 2025. By the close of trading on Tuesday, gold had fallen 2.06% to ₹1,18,461 per 10 grams, while silver slipped 1.36% to ₹1,41,424 per kilogram. On the Multi Commodity Exchange (MCX), gold opened 0.7% lower at ₹1,20,106 per 10 grams, down from the previous close of ₹1,20,957. Silver mirrored the movement, starting 0.69% lower at ₹1,42,366 per kilogram.

The decline follows a robust two-month rally, with traders opting to book profits amid shifting global signals. Both metals fell below key psychological benchmarks — $4,000 per ounce for gold and $47 for silver — as selling pressure intensified. The weakness has been largely attributed to a stronger U.S. dollar and renewed optimism surrounding trade negotiations between the U.S., China, and India.

Market analysts note that the safe-haven appeal of gold has softened as investor sentiment improves on hopes of a potential U.S.–China trade agreement. They caution that volatility is likely to remain high in the near term, with prices expected to experience further short-term corrections.

Experts suggest that the ongoing weakness stems from profit booking and changing global market dynamics. Many anticipate that the downward momentum could continue in the short run, advising investors to track market trends closely before initiating fresh positions. Despite the current correction, gold prices still remain well above pre-festive levels, underscoring persistent uncertainty in the bullion market.