Thinking of Buying Gold Now? Experts Explain the Sudden Price Drop

Gold and silver prices have paused after an explosive rally that pushed both metals to all-time highs. This sudden pullback has sparked a big question among investors and jewellery buyers - does this dip offer a golden buying opportunity, or is more downside still on the way?

Budget Volatility Triggers Sharp Price Correction

The correction came amid intense market swings following the Union Budget 2026. Last week saw one of the sharpest single-day falls in gold and silver prices since 1980, shaking investor confidence across global and domestic markets.

Gold and Silver Prices Fall Sharply in India

In India, gold slipped from record highs near ₹1.80 lakh per 10 grams to around ₹1.49 lakh. Silver also witnessed a steep fall, tumbling from above ₹4.20 lakh per kg to nearly ₹2.91 lakh, marking a dramatic short-term correction.

Global Precious Metal Prices Also Slide

The global market mirrored the trend. Gold prices eased to around $4,864 per ounce, while silver dropped to nearly $84.66 per ounce, reflecting widespread profit booking and cautious investor sentiment.

Profit Booking Emerges as Key Reason

One of the main reasons behind the fall is profit booking. After weeks of strong gains, investors who entered at lower levels chose to lock in profits. This selling pressure dragged prices lower but hasn’t damaged the long-term outlook for precious metals.

International Markets See Cooling Trend

Internationally, gold cooled from levels above $5,600 per ounce to the $5,160–$5,320 range. Silver also softened, slipping from around $121 to nearly $108–$111 per ounce, confirming that the correction is global, not India-specific.

Strong Support Levels Limit Further Fall

Despite the sharp dip, buying interest has surfaced at lower levels. In the domestic market, gold is finding strong support between ₹1.57 lakh and ₹1.59 lakh, while silver is holding firm near ₹3.55–₹3.60 lakh per kg.

Import Duty Speculation Adds to Uncertainty

Last year’s Budget reduced import duties on gold and silver from around 15% to nearly 6% to curb smuggling. This year, speculation about further changes has fueled volatility, although no official announcement has been made. For now, the basic customs duty remains unchanged.

Is This the Right Time to Buy Gold and Silver?

Experts believe the recent fall looks more like a healthy correction than a market collapse. Long-term demand remains strong, and buyers continue to step in on dips. However, short-term volatility may persist.

For long-term investors, staggered buying during dips is considered safer than investing a lump sum. Short-term traders, on the other hand, should stay cautious as price swings could remain sharp.