Gold, silver prices crash after hitting record highs as global markets turn volatile
PTC Web Desk: The global precious metals market witnessed a sharp reversal on Thursday, with gold and silver prices plunging steeply after scaling historic highs, reflecting rising uncertainty across global financial markets.
Silver, which had recently surged to an all-time high of Rs 4.20 lakh per kg in India and $121 per ounce in the international market, suffered a sudden correction, erasing a large portion of its recent gains within hours. Gold, traditionally considered a safe-haven asset, also faced heavy selling pressure, sliding by nearly $500 per ounce to around $5,100, while silver dropped close to 12 per cent in a single session.
Market experts attributed the sudden sell-off to turmoil in global equity markets, particularly a sharp decline in US technology and artificial intelligence stocks. A major fall in Microsoft shares, triggered by concerns over heavy AI-related spending and slowing cloud revenue growth, sparked broader risk aversion, prompting investors to exit precious metals as well.
Pankaj Arora, national president of the All India Jewellers and Gourmet Federation, said silver’s rapid rally over the past two weeks had become unsustainable. “Silver rose by nearly Rs 25,000 to Rs 40,000 in just 15 days, which was a straight-line move. Such sharp gains often invite corrections,” he explained.
Arora added that while global fundamentals remain supportive, especially with the US categorising silver as a critical mineral and China tightening export controls, the dominance of speculative or “paper trading” on exchanges has led to extreme price swings. He pointed out that domestic silver prices fluctuated wildly, falling from Rs 1.85 lakh to Rs 1.65 lakh per kg within a single day.
Despite the volatility, he advised investors to remain patient, suggesting that silver could potentially reach Rs 7 lakh per kg in the long term, though interim corrections towards Rs 2.5 lakh cannot be ruled out.
- With inputs from agencies
