- The Gold Rate Today plunged around 6% in a single day — marking its most severe one‑day drop in 12 years.
- Meanwhile, Silver fell even more sharply, by about 8–9%, after previously hitting a record high.
- According to analysts, the drop turned into a cascade of selling as early profit‑taking snowballed and triggered technical corrections.
🔍 Why Did This Happen? Key Triggers
Profit‑booking after the rally: Both metals had run up dramatically this year, especially gold which breached $4,000 / oz. Correction was overdue.
Easing of geopolitical & trade tensions: Signals of improvement in US‑China relations and other global stress‑factors reduced the “safe‑haven” demand for precious metals.
Stronger US dollar & rising interest‑rate expectations: When the dollar strengthens and interest rates rise (or are expected to), gold becomes less attractive.
Technical over‑extension: The rally had become “frothy” — one broker said the market was in the “stratosphere”.
🇮🇳 What This Means for India — Watch for Tomorrow
Because of the global drop, prices for gold and silver in India are likely to fall when the domestic market opens.
With the Multi Commodity Exchange of India (MCX) closed for the festival holiday, Indian buyers and jewellers may see a delayed but sharper reaction.
Jewellery demand, especially in the upcoming festive season, might get a boost due to lower rates — a chance for consumers.
✅ Quick Takeaways for You
If you need to buy jewellery, this correction might offer a better price window — but don’t assume it will free‑fall forever.
If you’re investing in gold or silver, the tailwind remains (inflation hedge, central‑bank buying), but volatility is high.
The drop doesn’t necessarily signal the end of the bull‑run — just a meaningful pause or correction is underway.