Silver Price Collapse: ₹60,000 Drop in a Single Day, Gold Also Falls—Is It the Right Time to Buy?

New Delhi: Friday proved to be a turbulent day for precious metals, with silver and gold prices crashing sharply on the Multi Commodity Exchange (MCX). By 3:30 PM, silver had fallen nearly ₹60,000, while gold dropped over ₹14,000.

The Scale of the Decline
Silver plunged roughly 15%, trading at ₹3,39,910 per kg, whereas gold fell about 9%, dropping to ₹1,55,000 per 10 grams. This historic correction followed a record-setting rally in January, during which silver surged 56%—its strongest monthly gain on record—and gold rose over 20% against the US dollar, marking its highest monthly increase since 1980.

Previous Day’s Record Highs
The dramatic fall came just a day after silver hit a historic peak of ₹4,20,048 per kg and gold reached ₹1,80,779 per 10 grams. The global markets reflected the same trend: COMEX gold fell 2.2% to $5,236.74 per ounce.

US Connection to the Drop
The correction accelerated following remarks by former US President Donald Trump, who indicated he would soon announce a replacement for Federal Reserve Chairman Jerome Powell. Reports suggested ex-Fed Governor Kevin Warsh as a potential candidate. Market expectations of a less accommodative Fed, combined with a stronger US dollar and overbought technical signals—conditions where prices have risen too sharply—fueled the sell-off.

Is This a Buying Opportunity?
The big question now for investors is whether this decline represents the right entry point. Analysts from Citigroup’s commodities team described silver as “gold on steroids,” driven by continuous capital flows, geopolitical risks, and shifts in the gold-silver ratio. They anticipate further gains unless silver becomes historically expensive relative to gold.

Conversely, former JPMorgan quant strategist Marco Kolonovich predicts silver prices could fall by up to 50% by year-end. For gold, experts maintain a bullish outlook, suggesting the current decline may be temporary, with potential upside in the near future.