Mumbai, Oct 18 : After a record breaking rally over the past few weeks, Gold and Silver prices saw a sharp correction on Friday on the Multi Commodity Exchange (MCX), driven primarily by profit taking.
Gold prices for 24 kt, which recently peaked at Rs 1,32,294 per 10 grams, fell nearly 3% to Rs 1,25,957 per 10 grams. Silver saw an even steeper decline, dropping over 8% from Rs 1,70,415 per kg to Rs 1,53,929 per kg.
Market experts described the fall as a “healthy correction” following an extraordinary rally. Ajay Bagga, Banking and Market Expert, termed it a “necessary tactical retreat” prompted by short-term sentiment shifts and easing geopolitical tensions, including a conciliatory tone from U.S. President Donald Trump on China tariffs.
Bagga added that the long-term outlook for precious metals remains strong, supported by factors such as global de-dollarization, persistent supply deficits in Silver, central bank accumulation, low real interest rates, and high geopolitical risk. He advised investors to view the correction as an opportunity to build or increase long-term positions.
Ajay Kedia, Founder and Director of Kedia Commodities, echoed the sentiment, noting that the correction was expected after a parabolic rise over the last two months. He attributed the drop to profit-booking, upcoming U.S.-China talks, and peace discussions between the U.S. and Russia. Kedia emphasized that the correction does not signal a market reversal and that volatility may continue in the short term.
Both experts agreed that the correction is part of a normal market cycle following sustained gains, and the broader structural trend for Gold and Silver remains bullish.