Silver bubble bursts, prices crash by up to Rs 1 lakh in a day, gold also slips by Rs 33,000

New Delhi (The Uttam Hindu): Gold and silver prices have witnessed their sharpest fall so far, triggering panic among investors. In a single day, silver prices dropped by more than Rs 1 lakh per kilogram, while gold became cheaper by over Rs 33,000 per 10 grams. The decline was not limited to futures trading, as domestic markets also recorded a steep fall in precious metal prices. Market experts had already warned that prices of gold and silver, which had reached historic highs, were due for a major correction and that prediction has now come true.

According to market analysts, the long-anticipated silver bubble has finally burst. Within one trading session, silver prices plunged by over Rs 1 lakh per kg. On Thursday, silver had surged sharply on the Multi Commodity Exchange (MCX) and closed at a record Rs 3,99,893 per kg. However, on Friday, silver futures with a March 5 expiry crashed to Rs 2,91,922 per kg, marking a massive fall of Rs 1,07,971 in just one day.

It is noteworthy that just a day earlier, silver prices had soared at rocket speed and crossed the Rs 4 lakh per kg mark for the first time in history, touching an all-time high of Rs 4,20,048 per kg. Following this record rally, investors faced a major shock as silver fell by Rs 1,28,126 per kg from its peak within a day.

Gold prices also witnessed a similar trend. The price of 24-carat gold dropped sharply by Rs 33,113 per 10 grams in a single trading session. The steep fall in silver had a direct impact on gold prices as well. On MCX, gold futures with an April 2 expiry had closed at Rs 1,83,962 per 10 grams on Thursday, but slipped to Rs 1,50,849 per 10 grams on Friday.

Looking at the decline from its peak, gold had also touched a lifetime high of Rs 1,93,096 per 10 grams on Thursday. Following the sudden correction, gold fell by as much as Rs 42,247 per 10 grams from its record level.