Gold and Silver Prices Fall: Is It the Right Time to Buy or Wait?

Gold and silver prices have paused after an extraordinary rally that sent both precious metals to record highs. The sharp correction has sparked a key question among investors and jewellery buyers alike: does this decline offer a buying opportunity, or is further downside still on the cards?

The pullback came amid heightened volatility following the Union Budget 2026. Last week marked the steepest single-day fall in gold and silver prices since 1980. In the Indian market, gold slipped from near Rs 1.80 lakh per 10 grams to around Rs 1.49 lakh, while silver dropped sharply from above Rs 4.20 lakh per kg to nearly Rs 2.91 lakh.

Globally, gold prices eased to around $4,864 per ounce, while silver declined to approximately $84.66 per ounce, reflecting broad-based selling pressure across international markets.

What Triggered the Fall?

The primary driver behind the decline has been profit booking. After weeks of uninterrupted gains, traders who had entered positions at lower levels chose to lock in profits, leading to a sharp correction. While the selling was intense, analysts say it does not fundamentally alter the long-term outlook for precious metals.

Internationally, gold retreated from highs above $5,600 per ounce to a range of $5,160–$5,320, while silver cooled from nearly $121 to around $108–$111 per ounce.

Support Levels Hold Firm

Despite the sharp fall, buying interest has re-emerged at lower prices. In India, gold is finding strong support in the Rs 1.57–1.59 lakh per 10 grams zone, while silver is stabilising around Rs 3.55–3.60 lakh per kg, suggesting that buyers are stepping in on dips.

Market participants are also closely watching policy cues. While last year’s Budget slashed import duties on gold and silver from about 15% to roughly 6%, speculation around further changes this year added to volatility. However, the government has left the basic customs duty unchanged at around 6% for now.

Should Investors Buy Now?

Experts view the recent decline as a healthy correction rather than a market breakdown. Long-term demand remains intact, and dip buying continues to provide support. Still, short-term price swings are likely to persist.

For long-term investors, staggered buying during dips may be a prudent strategy. Short-term traders, however, are advised to remain cautious given the ongoing volatility.