Gold and silver prices saw a steep fall on Saturday, October 18, as profit booking intensified ahead of Dhanteras following record-breaking highs earlier in the day. The decline marked the first significant correction in nearly two months after a sustained rally driven by global uncertainty and investor demand. On the Multi Commodity Exchange (MCX), silver prices dropped by more than Rs 10,000 from a record Rs 1,70,415 per kg to Rs 1,53,929 per kg, a fall of over 8 per cent.
Gold also slipped around Rs 4,000 from its peak of Rs 1,32,294 per 10 grams to Rs 1,25,957 per 10 grams – a decline of roughly 3 per cent. Market experts said the decline was expected after an extraordinary rise over recent weeks. Ajay Bagga, banking and market analyst, told ANI that the fall is a tactical and natural correction after a historic rally. He said easing global tensions – particularly after US President Donald Trump’s softer stance on trade tariffs against China – reduced short-term demand for safe-haven assets.
“This is a sentiment-driven correction. The long-term case for gold and silver remains compelling, supported by global de-dollarisation, central bank purchases, and supply shortages in silver,” Bagga said. He advised long-term investors to treat the current decline as an opportunity to build or add to their holdings. “The fundamentals remain strong, and silver’s dual industrial and investment use continues to support demand,” he added.
Silver sees steeper fall
Silver prices experienced a deeper cut compared to gold, sliding over 8 per cent in a single session. However, experts believe its long-term outlook remains solid. “Silver has significant industrial demand, especially in solar panels, electric vehicles, and electronics. The correction is technical, not structural,” Bagga said, noting that the metal’s overall trajectory remains upward despite short-term volatility.
Overbought market triggers selling pressure
Ajay Kedia, Founder and Director of Kedia Commodities, said the pullback was on expected lines after a one-way surge since August. “The market had turned overbought and a technical correction was due. Alongside profit booking, international developments including ongoing talks between the U.S., China, and Russia have influenced investor sentiment,” he said. Kedia added that the decline does not indicate a reversal of trend. “This is the first major drop in eight weeks. Markets will remain sensitive to global headlines, but the broader direction still points upward,” he said.