After weeks of steady gains, gold and silver prices have fallen sharply, leaving investors wondering if it is time to buy or wait for further decline. The fall in bullion prices on Tuesday reflected similar trends in global markets, as optimism over easing US–China trade tensions and a stronger US dollar reduced the appeal of safe-haven assets.
According to data from the Multi Commodity Exchange (MCX), gold opened 0.7% lower at ₹1,20,106 per 10 grams, compared to ₹1,20,957 in the previous session. By the end of the trading day, gold slipped further to ₹1,18,461 per 10 grams, marking a decline of over 2%. Silver prices followed a similar trend, opening 0.69% lower at ₹1,42,366 per kg and closing at ₹1,41,424 per kg, down by 1.36%.
This downturn comes after a two-month rally that saw gold touching record highs. Analysts said the fall was primarily due to profit booking by traders and investors who had accumulated positions at higher levels. 
Commodity experts say that global developments have played a key role in the recent drop. Rahul Kalantri, Vice President – Commodities at Mehta Equities Ltd, explained that both metals had come under selling pressure after a strong rally. “Gold and silver prices slipped below key psychological levels — $4,000 for gold and $47 per ounce for silver. The decline is being driven by a stronger dollar index and renewed optimism over trade talks between the US, China, and India,” he said.
Kalantri also pointed out that progress in Gaza peace discussions reduced geopolitical risks, leading investors to shift away from gold. “Safe-haven demand has weakened. However, the depreciation of the Indian rupee is providing some cushion to gold prices in the domestic market,” he added.
Investors are now waiting for major central bank meetings that could shape the next move in bullion prices. The US Federal Reserve is expected to announce a 25-basis-point rate cut following recent soft inflation data. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BoJ) are likely to maintain their existing policies.
According to Kalantri, gold has support levels around $3,940–3,905, while resistance is expected near $4,055–4,100. This suggests that if prices drop further, bargain buying could emerge, but sustained gains may depend on global monetary cues.
Market experts are advising investors to remain cautious, as short-term volatility is expected to continue. Darshan Desai, CEO of Aspect Bullion & Refinery, said that gold prices could fluctuate sharply depending on how US–China trade negotiations and central bank decisions evolve in the coming weeks.
“Gold continues to decline as safe-haven demand weakens amid optimism over a potential US–China trade deal and a firmer dollar,” Desai said. “Those planning to buy gold as a hedge against uncertainty should be prepared for short-term price swings.”
