Gold and silver prices have taken a breather after a stunning rally that pushed both metals to record highs. The sudden pullback has left investors and buyers asking the question: Is this dip a buying opportunity, or is there more downside ahead?
The decline followed intense volatility after the Union Budget 2026. Last week, both metals recorded their steepest single-day fall since 1980. In India, gold retreated from record levels near Rs 1.80 lakh per 10 grams to around Rs 1.49 lakh, while silver plunged from above Rs 4.20 lakh per kg to nearly Rs 2.91 lakh.
Global gold prices dropped to around $4,864 per ounce, while silver slid to nearly $84.66 per ounce.
Why Gold And Silver Prices Fell
A key reason behind the fall has been profit booking. After weeks of strong gains, traders who entered at lower levels moved to lock in profits. This selling pressure pulled prices down, though it has not altered the long-term outlook for precious metals.
The correction was not limited to India. Internationally, gold slipped from above $5,600 per ounce to the $5,160-$5,320 range. Silver also cooled, easing from around $121 to $108-$111 per ounce.
Despite the sharp fall, buying interest has emerged at lower levels. In the domestic market, gold is finding strong support between Rs 1.57 lakh and Rs 1.59 lakh, while silver is holding near Rs 3.55-3.60 lakh per kg.
Last year's Budget reduced import duties on gold and silver from about 15 per cent to around 6 per cent to curb smuggling and align local prices with global markets. This year, speculation around further changes has added to volatility, though no official announcement has been made. For now, the basic customs duty on gold remains unchanged at around 6 per cent.
Is It The Right Time To Buy?
The recent fall looks like a normal correction after a very strong rise, not a sign that prices are collapsing. Demand from investors remains strong, and buyers are stepping in whenever prices dip, which is helping gold and silver hold firm. That said, short-term ups and downs are still possible.
For long-term investors, buying in small amounts during price dips may be safer than putting in all the money at once. For short-term traders, caution is advised as prices can still move sharply.
