Gold and Silver Prices Fall After Record Highs: Should You Buy Now or Wait?

Mumbai: gold and silver prices witnessed a pullback on Wednesday after touching multiple all-time highs, prompting investors and consumers to question whether this correction presents a buying opportunity or signals the need for caution.

On the domestic market, MCX Gold cooled off after recently scaling a record high near Rs 1,80,779, retreating into the Rs 1,63,000–Rs 1,80,500 range. Silver, which had surged dramatically past Rs 4,20,000, also saw a sharp pause, stabilizing at lower — yet historically elevated — levels.

According to Ponmudi R, CEO of Enrich Money, the correction is a natural outcome following the steep rally.

“This cooling-off phase is healthy because gold had run up too quickly,” he said. “We continue to see steady buying interest whenever prices dip, which suggests the broader uptrend remains intact.”

Why Are Gold and Silver Prices Falling?

The primary reason behind the decline is profit booking. After weeks of relentless gains, traders who entered at lower levels are locking in profits, leading to a short-term drop in prices.

Globally, gold on the COMEX exchange has slipped from levels above $5,600 to trade in the $5,160–$5,320 range. Ponmudi described this move as a technical reset rather than a change in sentiment.

“Gold is still trading well above its key moving averages,” he explained. “That usually signals consolidation, not a trend reversal. Strong buying interest is emerging consistently around the $5,050–$5,150 support zone.”

Silver has followed a similar pattern. After hitting record highs near $121.6, COMEX Silver is currently consolidating between $108 and $111.

“Silver tends to move in sharp bursts, both upward and downward,” Ponmudi noted. “As long as prices remain above key support levels, the overall momentum stays positive.”

Domestic technical charts reflect the same trend. Gold has established a strong base in the Rs 1,57,000–Rs 1,59,000 range, while silver is finding steady support between Rs 3,55,000 and Rs 3,60,000, where buyers are consistently stepping in.

Should You Buy Gold or Silver Now?

For retail investors and long-term buyers, analysts largely agree that such pullbacks can offer opportunities — but with caution.

“If gold or silver is being bought as a long-term store of value, staggered buying makes far more sense than investing everything at once,” Ponmudi advised. “These corrections allow investors to enter without chasing prices at peak levels.”

Short-term traders, however, should remain alert. Given the recent overheating, both metals may continue to see sharp intraday swings and heightened volatility.

In summary, while the long-term outlook for gold and silver remains positive, experts recommend a phased buying approach rather than panic buying or waiting indefinitely for deeper corrections.