Short-Term Correction After Sharp Rally
Gold and silver prices are currently undergoing a temporary correction after a strong rally in the past year. Experts say this pullback is normal and the long-term outlook for both precious metals remains positive.
Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, told ANI that the recent dip in gold prices was expected after a long period of gains.
“Gold has risen sharply over the last four months, from around $3,300 per ounce to $4,400 per ounce, an increase of nearly $1,100 per ounce. In India, 24-carat gold jumped from Rs 75,000 per 10 grams to Rs 1.3 lakh per 10 grams,” he said.
Rokde explained that such a correction is normal after a prolonged rise.
Factors Supporting Gold Prices
Despite the dip, global demand for gold remains strong. Central banks around the world continue to buy gold, limiting the possibility of a deeper fall.
Other factors supporting gold prices include:
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Geopolitical tensions
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US tariffs
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De-dollarisation trend, as many countries reduce reliance on the US dollar and view gold as a safe alternative
“After Diwali, traders often book profits before taking short holidays. That can lead to small declines. Even now, gold prices are around Rs 1.25–1.26 lakh per 10 grams, with strong potential to rise further,” Rokde added.
Silver Prices Also Correcting
Ajay Kedia, founder and director of Kedia Commodities, said silver has also seen a significant rise, nearly doubling over the past year.
“From January to now, silver prices have gained around 85%. A 10–20% correction is normal after such a sharp rise,” he said.
Silver prices in India have fallen 12–12.5% since Friday, with a larger drop globally. Kedia expects consolidation before the next upward movement.
He noted that silver may find support around Rs 1.40 lakh per kg, but there is no clear buying opportunity at present. Gold recently fell from $4,300 to $4,100 per ounce in three sessions.
“Gold’s near-term movement depends on US-China and US-Russia relations. Investors should note current volatility. Prices could dip to around Rs 1.25 lakh, so current levels are not ideal for buying,” Kedia said.
Long-Term Outlook Remains Positive
Both experts agreed that short-term dips may occur, but gold and silver retain strong fundamentals. Global demand, economic trends, and central bank activity support long-term growth in precious metals.
