Bullion on losing streak: gold sheds 30% to Rs 1.35 lakh from peak, silver down more than 50%; should investors buy the dip?

• Gold, silver plunge on strong dollar and market volatility
• Precious metals lost nearly $2T in value within hours
• Analysts urge staggered buying for medium- to long-term investors

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Precious metals have been on a losing streak since the early March 23 trade, which reportedly wiped nearly $2 trillion in market value within hours, as investors rushed to book profits.

Domestic futures gold price on MCX fell 6.5 percent to Rs 1,35,100 per 10 grams, and silver edged 8.97 percent lower to Rs 2,06,441 per kilogram, as of 11:50 IST.

International spot gold also traded lower in the early Comex trade. Gold declined 2.47 percent to $4,492 an ounce, and silver declined 4.78 percent to just above $67 per ounce.

Commodity analysts pinned the volatility on a stronger US dollar, which opened at 93.88 against the rupee, as Brent crude prices hovered above $110 per barrel. The Kobeissi Letter noted that precious metals erased nearly $2 trillion in market value within hours, citing oil price volatility.

Gold prices have fallen nearly 30 percent from the peak of Rs 1.93 lakh on January 29, 2026, and retreated sharply, hovering between Rs 1.50 lakh and near Rs 1.70 lakh per 10 grams on MCX. Similarly, silver futures have since fallen more than 50 percent from the record of Rs 4.39 lakh per kilogram.

Why is bullion down? Should investors buy the dip?

The standard price of gold stood at Rs 1,59,097 per 10 grams before the Iran conflict (Feb. 27). The metal’s price then surged sharply by nearly 5.5 percent to Rs 1,67,471 when the market opened amid the Iran war on March 2.

Usually, rising geopolitical risk lifts both crude and safe-haven assets like gold. However, the elevated dollar continues to cap bullion’s upside, keeping sentiment weak, though reports suggest that the Strait of Hormuz, which accounts for India’s 90 percent oil reserve, is not completely blocked but open to flex.

“Gold is under pressure today due to a combination of profit booking after recent volatility, a stronger US dollar, and rising real yields as markets continue to price in a ‘higher-for-longer’ rate environment,” said Renisha Chainani, Head of Research, Augmont.

The Augmont Bullion report, published on March 23, noted that gold could see further profit-booking to $4,200 (Rs 1.32-1.33 lakh) per 10 grams. “But prices are in an oversold zone, so we could see gold rebound and short-covering too this week, up to $4,750 (Rs 1.48-1.49 lakh), and silver up to $77 (Rs 2.40 lakh) too this week."

Chainani said, “Liquidity-driven selling is still dominating sentiment. However, this weakness should be viewed as a corrective phase rather than a trend reversal."

She suggests, “Investors with a medium- to long-term horizon can consider buying on dips near key support levels, but staggered buying is advisable given elevated volatility and macro uncertainty.”

"Overall, the correction still appears more like a pause within a broader supportive environment rather than the start of a sustained downtrend; however, we need to keep a close eye on the ever-changing geopolitical landscape," cautioned Ross Maxwell, Global Strategy Operations Lead at VT Markets.