Precious Metals Witness Sharp Correction as Investors Prefer Cash Amid Global Uncertainty
New Delhi (Economy India): Gold and silver prices witnessed a significant decline this week as investors continued to book profits and shift towards cash holdings amid ongoing geopolitical uncertainty and volatile global financial markets.
According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ₹6,438 per 10 grams, while silver recorded an even steeper decline of ₹14,326 per kilogram during the week.
Gold Falls to ₹1.48 Lakh per 10 Grams
The price of 24-carat gold declined from ₹1.54 lakh per 10 grams on June 6 to approximately ₹1.48 lakh per 10 grams, reflecting a sharp correction in the precious metals market.
Despite the recent decline, gold remains significantly higher compared to its level at the beginning of the year.
📉 Weekly decline: ₹6,438 per 10 grams
💰 Current price: ₹1.48 lakh per 10 grams
📊 Gold price on December 31, 2025: ₹1.33 lakh
Silver Slips Below ₹2.45 Lakh per Kg
Silver also witnessed strong selling pressure.
The metal declined from ₹2.57 lakh per kilogram to around ₹2.43 lakh per kilogram, resulting in a weekly loss of ₹14,326 per kilogram.
📉 Weekly decline: ₹14,326 per kg
💰 Current price: ₹2.43 lakh per kg
📊 Silver price on December 31, 2025: ₹2.30 lakh per kg
Gold Down ₹28,000 from Record High
Gold prices have corrected substantially from their all-time highs achieved earlier this year.
On January 29, 2026, gold touched a record high of ₹1.76 lakh per 10 grams. Since then, prices have fallen by nearly ₹28,000 per 10 grams.
Similarly, silver reached an all-time high of ₹3.86 lakh per kilogram on January 29, 2026.
Since that peak, silver has declined by approximately ₹1.43 lakh per kilogram over the last 135 days.
Why Are Gold and Silver Prices Falling?
Traditionally, precious metals rise during periods of geopolitical conflict and uncertainty. However, market conditions have been different this time.
1. Investors Prefer Cash
🌍 Ongoing tensions in the Middle East have increased uncertainty in global markets.
💵 Instead of increasing exposure to precious metals, many investors are selling gold and silver to build cash reserves and maintain liquidity during uncertain times.
2. Profit Booking After Record Rally
📈 Gold and silver witnessed a massive rally earlier this year, reaching historic highs in January.
💰 Many institutional and large investors have chosen to lock in profits by selling their holdings at elevated prices.
📉 Increased supply in the market has contributed to downward pressure on prices.
What Analysts Are Saying
Market experts believe precious metals may remain volatile in the near term as investors closely monitor:
🏦 Central bank policy decisions
🌍 Geopolitical developments
💵 US dollar movements
📈 Inflation trends
🛢️ Crude oil prices
Any major escalation in global tensions or changes in interest-rate expectations could influence the direction of gold and silver prices in the coming weeks.
The sharp decline in gold and silver prices this week reflects changing investor preferences amid uncertain global conditions. While precious metals continue to serve as long-term safe-haven assets, short-term market dynamics, profit booking, and liquidity concerns are currently weighing on prices. Investors will closely track global developments to assess the next direction for bullion markets.
(Economy India)
