Market Turmoil: Gold and Silver Prices Plummet Amid Profit Booking
Market Overview
New Delhi/Jaypur, March 8, 2026: The gold and silver markets have experienced significant volatility in recent days. At the beginning of March 2026, both gold and silver reached record highs, but a sudden wave of profit booking, easing tensions in the Middle East, and signals from global markets led to a sharp decline in prices. Over the past five days, gold has dropped by up to ₹10,000, while silver has seen a decrease of ₹37,000, creating a stir among investors and jewelry buyers.
What Happened in the Last 5 Days?
Beginning of March (March 3-4): Gold was trading above ₹1,70,000 per 10 grams for 24-carat, and silver was around ₹2,95,000-3,15,000 per kilogram. Prices soared due to global uncertainties, particularly tensions involving the US, Israel, and Iran, along with a weakening dollar.
Sudden Decline (March 4-7): Heavy selling occurred in the MCX and spot markets due to profit booking. Gold prices fell by ₹10,000-11,000, settling between ₹1,59,000-1,63,000 per 10 grams. Silver experienced an even sharper decline, with reports indicating a drop to ₹2,60,000-2,85,000 per kilogram.
Today's Update (March 8, 2026): The market shows slight recovery. Currently, 24-carat gold is trading at approximately ₹1,63,640 per 10 grams, while 22-carat gold is around ₹1,50,000. Silver remains stable at ₹2,85,000 per kilogram. After the recent decline, gold has bounced back by ₹2,000-3,000 today, but overall, it remains lower.
Key Reasons for the Decline
Profit Booking: Investors are cashing in on profits after record highs.
Global Factors: Signs of easing tensions in the Middle East, stability in the US dollar, and changes in expectations regarding interest rate cuts.
Domestic Market: Volatile trading on the MCX and high margin requirements have reduced leveraged positions.
Greater Impact on Silver: Silver is also tied to industrial demand, leading to a more pronounced decline.
What Lies Ahead? (Gold & Silver Outlook 2026)
Experts believe that gold will continue to be a safe-haven asset in 2026. Reports from economic surveys and institutions like Goldman Sachs suggest that due to global uncertainties, geopolitical risks, and central bank buying, prices could reach ₹1.5-1.75 lakh per 10 grams. However, a short-term correction of 10-20% is possible. Recovery is also anticipated for silver, although it may remain more volatile.
If you're considering purchasing, this dip could present a buying opportunity. Experts recommend keeping an eye on support levels around ₹1,60,000-1,65,000. The market remains unstable—stay alert and monitor global news!