New Delhi: The prices of precious and industrial metals have witnessed extreme volatility over the past eight days, leaving investors and traders shocked. Gold, silver and copper, which were at record highs on January 29, have now corrected sharply on the Multi Commodity Exchange (MCX).

In a dramatic turnaround, silver has fallen by over 45%, gold has dropped by more than 22%, and copper has slipped nearly 16–18%, raising serious concerns among market participants.

With constant fluctuations in prices, people are now asking the same questions everywhere—how long will this decline continue, is this the right time to buy, should existing holdings be sold, or should investors shift toward copper?

Metals Were at Peak on January 29

On January 29, 2026, all three metals were trading at their highest levels on MCX:

• Gold: ₹1.93 lakh per unit
• Silver: ₹4.20 lakh per kg
• Copper: ₹1,480 per kg

The surge in prices had made these commodities extremely attractive for investors. In fact, silver’s rally was so sharp that it climbed from ₹3 lakh to ₹4 lakh per kg in just 10 days, reflecting strong speculative demand.

Sharp Fall Triggered Panic in the Market

The trend changed suddenly from January 30, when the market witnessed aggressive selling. For three straight days, gold, silver and copper fell sharply, creating panic among investors.

Although a slight recovery was seen on February 2, the momentum did not last. After two days of mild gains, the market again slipped into a downward trend, and prices failed to return to previous peak levels.

Current Prices: Massive Correction in 8 Days

According to market data, the correction over eight days has been extremely steep:

Prices recorded on Friday close (MCX):

• Gold: ₹1.55 lakh
• Silver: ₹2.49 lakh
• Copper: ₹1,242 per kg

Intraday low levels recorded on Friday:

• Gold: ₹1.49 lakh
• Silver: ₹2.29 lakh
• Copper: ₹1,213 per kg

This means that within just eight days:

• Gold fell nearly 23%
• Silver crashed by around 46% (almost half)
• Copper declined about 18%

Why Are Gold and Silver Falling?

Experts believe the decline is mainly driven by three key reasons:

1. Profit Booking After Massive Rally

The first major reason behind the fall is heavy profit booking. Since gold, silver and copper had delivered extraordinary returns in 2025, many investors started booking profits as soon as prices peaked.

2. Strengthening of the US Dollar

A stronger US dollar has made commodities more expensive for buyers using other currencies. This reduces global demand and pushes prices downward.

3. Regulatory and Margin Pressure

MCX reportedly increased the margin requirements on precious metal contracts. Higher margin deposits often discourage traders and reduce speculative buying, leading to selling pressure.

Additionally, investors are closely watching developments related to the appointment of a new Federal Reserve chief, which has added uncertainty in global financial markets.

What Should Investors Do Now?

Market analysts say the sharp fall in silver has once again raised concerns about its high valuation and extreme volatility. Experts warn that in times of market stress, silver can witness deep corrections.

However, analysts also believe that in the long term, silver’s fundamentals remain strong due to industrial demand.

JP Morgan investment bankers have reportedly warned that high silver valuation could lead to sharp falls during unstable market conditions, though stability may return soon and recovery is possible next year.

Expert Advice: Avoid Lump-Sum Buying

Commodity experts have advised investors to avoid putting large money in a single transaction. Instead, they recommend investing in small installments, which reduces risk and helps average out the cost.

Manoj Kumar Jain of Prithvi Finmart has suggested that investors should stay away from the precious metals market until stability returns.

Conclusion

The last eight days have completely reshaped the commodity market landscape. The steep fall in gold, silver and copper after hitting record highs has left investors confused and cautious. While long-term prospects may remain strong, the current market volatility indicates that investors should move carefully and avoid impulsive decisions until prices stabilize.