Gold and silver prices have crashed sharply over three sessions, with MCX silver falling about 41.5% from its recent peak and MCX gold also seeing a steep correction after record highs last month.​

What’s happening to gold and silver now?

• Gold and silver futures on MCX fell sharply for the third straight session, driven largely by aggressive profit‑booking after a powerful rally that had pushed both metals to all‑time highs just days earlier.​

• With the latest decline, silver has dropped by about ₹1.66 lakh per kg (around 41.5%) over only three trading sessions, highlighting extreme volatility.​
• Internationally, spot gold slipped about 3.3% to 4,703.27 dollars an ounce, after an intraday fall of over 5%, from a recent high of 5,594.82 dollars hit on Thursday.​
• Spot silver is comparatively firmer on the day (up 1.6% to 85.98 dollars), but still trades well below its lifetime peak of 121.64 dollars touched the same day.​

Why are bullion prices crashing?

• After a vertical rally to record levels, traders are taking profits off the table, leading to sharp downside as leveraged positions unwind.​

• CME Group has announced higher margin requirements on Comex gold and silver futures, raising the cost of holding leveraged bets; this often forces speculative players to cut exposure, adding further pressure on prices.​
• Because MCX gold and silver prices mirror global benchmarks, sharp moves or weakness on Comex quickly spill over into Indian markets, especially in early sessions.​
• Analysts expect volatility to stay high, influenced by the dollar index and ongoing geopolitical developments, which can quickly change risk sentiment.​

Key technical levels to watch

• According to experts quoted in the article, gold is expected to remain volatile but somewhat more stable than silver, which may see exaggerated swings.​

• International levels:

  • Gold:

    • Immediate support: 4,680–4,620 dollars per ounce.
    • Stronger weekly support: above 4,440 dollars per ounce.
    • Resistance: 4,800–4,910 dollars per ounce.​
  • Silver:
    • Support: roughly 67–74 dollars per ounce in the current phase; potential broader floor near 65 dollars per ounce.
    • Resistance: 84–88.80 dollars per ounce.​

• Domestic MCX levels:

  • MCX Gold:

    • Support: ₹1,44,400–₹1,37,700.
    • Resistance: ₹1,48,800–₹1,54,000.​
  • MCX Silver:
    • Support: ₹2,55,500–₹2,44,000.
    • Resistance: ₹2,78,000–₹2,92,000.​

Analysts advise a “watch‑and‑wait” approach, avoiding fresh aggressive positions until volatility cools and price structures stabilise.​

Strengths / opportunities in this correction

• Offers a chance to reassess allocations after a parabolic rise, instead of chasing momentum near record highs.​

• Deep correction can create staggered buying opportunities for long‑term asset allocators once prices and volatility stabilise near key support zones.​
• Higher margins and volatility may flush out over‑leveraged speculative positions, leading to a healthier market structure over time.​
• Technical reference points (support/resistance) give traders clearer risk‑reward zones for disciplined entries and stop‑loss placement.​

Risks / what investors should be careful about

• Near‑term volatility is extreme, especially in silver, where 40%‑plus moves in days can trigger large mark‑to‑market losses.​

• Increased margin requirements raise the cost of leverage, making it dangerous to hold oversized futures positions purely on hope of a bounce.​
• Trying to “catch the bottom” without a plan can lead to averaging down into a falling market, magnifying risk if supports break.​
• Currency swings and global news flow can cause gap moves in MCX prices, hitting stop‑losses or triggering margin calls overnight.​
• Expert views in the article are not personalised advice; investors still need to align any trade with their own risk profile and time horizon.​

FAQs – Gold & silver crash on MCX

1. Why have MCX gold and silver prices crashed so sharply?

• After a huge rally to record highs, aggressive profit‑booking, higher Comex margins and unwinding of leveraged positions have led to a fast correction in global bullion, which MCX closely tracks.​

2. Is this a good time to buy gold and silver on MCX?

• Experts quoted suggest caution and recommend waiting for volatility to subside and clearer stability near support zones before taking fresh positions, especially with leverage.​

3. Are further falls in gold and silver prices possible?

• Analysts see key supports (e.g., around 4,440 dollars for gold and near 65–67 dollars for silver), but also warn that volatility will likely persist and breaches of these zones cannot be ruled out.​

4. What should long‑term investors in physical gold or SGBs do now?

• The article focuses on futures and short‑term traders; long‑term holders typically ride out such swings, but must recognise that short‑term price crashes are part of bullion markets.​

5. How do higher margins abroad affect MCX traders in India?

• While MCX rules are unchanged, higher Comex margins can curb global risk appetite, widen intraday swings and delay fresh bargain‑buying, which then shows up in Indian prices.​