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In a dramatic turn of events, the bullion market has witnessed a sharp and rapid correction, with silver plunging nearly 50% and gold falling around 25% within just 53 days from their January 27 highs.

On MCX, silver touched an all-time high of Rs4,20,048 and has now dropped to approximately Rs2,06,360. Meanwhile, gold declined from Rs1,80,779 to around Rs1,35,800 during the same period. This steep fall reflects a broader global risk-off sentiment. The correction is largely driven by a widespread sell-off across asset classes, including Dubai’s real estate market, cryptocurrencies, and equities. Additionally, the US Federal Reserve’s hawkish stance—indicating limited rate cuts in 2026 and even the possibility of rate hikes—has strengthened the dollar, reducing the appeal of non-yielding assets like bullion. ETF inflows have also weakened, with emerging outflows adding further pressure. Geopolitical tensions have intensified uncertainty, keeping market sentiment fragile.

Looking ahead, the downside may continue in the near term. Gold could test Rs1,15,000 (internationally $3450–3500), while silver may slide toward $50 (around Rs1,75,000 MCX). However, historically, after initial war-driven corrections, bullion tends to recover in the later phase, suggesting potential support in the second half.