Gold and Silver Prices – Investors in gold and silver have been on edge lately, asking the same pressing questions — when will prices recover, and how much further can they fall? The anxiety is well-founded. Both precious metals have witnessed a dramatic slide over the past three months, with prices crashing as much as 46% from their peak levels.
The Peak and the Plunge
Back on January 29, 2026, both gold and silver were riding high. Gold had surged past ₹1.90 lakh per 10 grams, while silver crossed ₹4.25 lakh per kilogram — historic highs that seemed unstoppable at the time. However, what followed was a sharp and sustained reversal.
The decline deepened further after February 28, when the United States and Israel launched military strikes on Iran. The geopolitical shock triggered a fresh wave of selling across both metals.
How Much Has Gold Fallen?
On Monday, gold futures for June delivery on the MCX closed at ₹1,47,450 per 10 grams, down ₹216 for the session. At one point during intraday trading, prices dipped as low as ₹1,44,212. Compared to its January peak, gold has now lost over 22% of its value in just three months.
Even from the day the Iran conflict began, when gold was trading around ₹1.65 lakh, prices have dropped by more than 12% in a single month.
Silver Takes an Even Harder Hit
Silver managed a slight recovery on Monday, edging up ₹72 to close at ₹2,29,033 per kilogram. However, during the session, it touched a low of ₹2,25,763. The bigger picture tells a grimmer story — silver has plunged more than 46% from its January highs, making it the harder-hit of the two metals.
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When the Iran war broke out on February 28, silver was priced at approximately ₹2.82 lakh per kilogram. Since then, it has shed nearly 19% in just one month.
What Is Driving the Decline?
Several interconnected factors are weighing on precious metal prices:
- Crude oil surge: The Iran conflict has caused a sharp spike in global oil prices, stoking inflation fears.
- Stronger US Dollar: A rising dollar makes commodities like gold and silver more expensive for foreign buyers, dampening demand.
- Rising US Treasury Yields: Higher yields offer better returns on bonds, making non-yielding assets like gold less attractive.
- Reduced rate cut expectations: With inflation concerns resurfacing due to higher oil prices, hopes for interest rate cuts have faded — a key driver that previously supported precious metals.
Together, these forces have pushed investors away from gold and silver, triggering a broad sell-off.
What Should Investors Do?
Market experts are urging investors to stay calm and avoid panic selling. Several analysts maintain that gold remains a reliable long-term safe-haven asset, and short-term volatility should not dictate long-term strategy. For those who entered at lower price points and are sitting on gains, this could be an opportunity to book profits selectively — but wholesale exits may not be the wisest move at this stage.
