After months of steady gains, gold and silver prices have started to cool off, triggering questions among investors about whether the rally has finally run out of steam.
The recent dip follows one of the sharpest surges in years and while the correction has unsettled markets, analysts suggest it’s a normal phase after a prolonged climb rather than the start of a downturn
According to Puck News and market reports, spot gold prices recently saw their steepest one-day fall in over a decade, slipping by around 6.3% to $4,082 per ounce after hitting record highs above $4,380.
Analysts attribute this decline to profit-taking, a firmer US dollar, and easing safe-haven demand amid renewed optimism in US-China trade talks.
Industry experts, however, remain largely optimistic. Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, said the pullback was expected after an extraordinary rally. “Gold has seen a one-sided rise from about $3,300 to $4,400 per ounce in just four months. A brief correction like this is healthy,” he told ANI.
Despite the fall, Rokde believes gold remains supported by strong global buying, central bank demand, and ongoing geopolitical tensions.
Silver, too, has experienced a pause after nearly doubling in price over the past year.
Ajay Kedia, Director at Kedia Commodities, noted that “after an 85% rise, a 10-20% correction is natural.” He added that while some short-term pressure may persist, a major decline seems unlikely, as both metals are likely entering a consolidation phase.
Experts broadly agree that these price adjustments are temporary. With central banks continuing to stockpile gold and economic uncertainties still lingering, both gold and silver are expected to retain their shine in the longer term even if the immediate sparkle has dimmed for now.