On the domestic front, gold futures on the Multi Commodity Exchange (MCX) fell about 2–2.5% to around ₹1.49 lakh per 10 grams of 24-carat purity.
Silver prices also dropped sharply, falling about 5–6% to around ₹2.28 lakh per kilogram. The decline follows a recent surge that had pushed gold to nearly ₹1.54 lakh per 10 grams in intraday trade.
Globally, spot gold was down around 2% at around $4,664 per ounce, while US gold futures slipped about 2.5% per ounce.
The pullback came amid a stronger US dollar and rising bond yields, which reduced the appeal of non-yielding assets like gold.
Investor sentiment also turned cautious after Donald Trump signalled continued US military action in Iran, which pushed crude oil prices higher and added to inflation concerns.
Higher oil prices and firm interest rate expectations have complicated the outlook for precious metals, as elevated rates increase the opportunity cost of holding gold.
Market participants said the recent fall is also driven by profit booking after a strong rally over the past year, during which gold prices surged significantly amid geopolitical tensions, central bank buying and robust retail demand.
Krishna Patwari, Founder and Managing Director of Wealth Wisdom, said gold had already corrected nearly 10–15% from peak levels in recent weeks. He attributed the decline to elevated US interest rates, a strong dollar, rising crude prices and profit booking by institutional investors.
S Anand, Founder and CEO of PaySprint, said the price movement highlights how closely commodity markets are linked to global economic signals and geopolitical developments.
He noted that such volatility creates both caution and opportunity for investors.
Edul Patel, CEO of Mudrex, said the correction stresses that even traditional safe-haven assets can see sharp short-term swings, prompting investors to reassess diversification and risk strategies.
According to InCred Money, the correction was expected after gold rallied over the past year. The platform noted that a combination of geopolitical developments, including tensions in the West Asia, and profit booking from elevated levels triggered the recent decline.
It added that despite short-term volatility, gold’s long-term appeal as a hedge against uncertainty and currency risks remains intact.
Meanwhile, fintech platforms are witnessing increased traction during this phase of volatility. Industry experts said investors are using digital tools to respond quickly to price movements, with digital gold allowing purchases in smaller denominations and enabling faster portfolio adjustments.
Patel highlighted growing interest in emerging formats such as tokenised gold, while Anand pointed to the broader trend of integrating payments, savings and investments into unified digital platforms.
