Gold and silver prices drop: Why did precious metals fall from record peaks?

Gold and silver rates in Delhi declined on Thursday, easing from record highs as investors booked profits and geopolitical tensions softened. Since the start of 2026, precious metals have been soaring to new peaks in every other session due to heightened safe-haven demand on the back of rising geopolitical concerns. 

Gold prices (24K, 99.9% purity) fell by 1.5% (₹2,500) to ₹1,57,200 per 10 gram after closing at a lifetime high of ₹1,59,700 per 10 gram on Wednesday, according to the All India Sarafa Association. 

Meanwhile, silver prices fell by 4.3% (₹14,300) to ₹3,20,000 per kg in Delhi, declining from the peak of ₹3,34,300 per kg, breaking the unprecedented nine-day rally.

Why did gold and silver fall today?

With persistent buying, falling currencies, tumbling markets and tariff concerns due to the US President’s Greenland threats, gold and silver soared, followed by some profit booking seen on Thursday. Additionally, global cues softened as President Trump withdrew his threat to impose tariffs on European nations, saying that a deal regarding Greenland has been established. 

Subdued global sentiment, along with profit booking, led to a fall in gold and silver prices on Thursday. The precious metals exchange-traded funds (ETFs) fell by up to 15%, alongside major declines in bullion prices. However, it’s important to note that ETF prices are more volatile than physical markets, and gold and silver ETFs fluctuate more in sensitive situations. 

“Easing geopolitical risk sentiment triggered partial profit booking in domestic markets even as Trump's comment that the US will have a good trade deal with India kept bullion prices slightly pressured,” a PTI report quoted Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, as saying. 

International markets

As per FOREX.com data, gold fell by $8.80, or 0.18%, to $4,822.65 per ounce in the overseas markets. The yellow metal hit a record of $4,888.22 per ounce in the global markets on January 21, but later settled at $4,836.67 per ounce.

"Spot gold is trading lower at around $4,820 per ounce level after US President Trump ruled out forceful takeover of Greenland in his speech at the World Economic Forum, Davos on Wednesday," the PTI report quoted Praveen Singh, Research Analyst, Mirae Asset Sharekhan, as saying.

He said a slight softening in global bond yields has added to the downside pressure on gold. However, elevated geopolitical tensions have been diffused to some extent, and concerns are likely to linger, which will support the shiny metal on the upside.

"Domestic gold prices may draw further support from the possibility of an import duty hike in the upcoming Union Budget," Singh added.

Meanwhile, spot silver was trading 0.27% higher at $93.36 per ounce in overseas trade. The white metal touched a lifetime high of $95.89 per ounce on Tuesday, January 20. 

Gold and silver are expected to remain volatile as traders stay cautious ahead of key US inflation numbers and the Bank of Japan's monetary policy decision, the report quoted Kaynat Chainwala, AVP Commodity Research, Kotak Securities, as saying. 

Gold, silver futures

Gold futures for February delivery were trading lower on Thursday, falling to an intraday low of ₹1,48,777 per 10 gram on the Multi Commodity Exchange after climbing to a peak of ₹1,58,475 per 10 gram on Wednesday. 

Silver futures for the March expiry also fell on Wednesday, touching an intraday low of ₹3,04,039 per kg on the MCX. The white metal contracts hit a lifetime high of ₹3,35,521 per kg on the MCX on Wednesday. 

"Gold and silver prices saw profit-booking as geopolitical tensions briefly eased after US President Donald Trump withdrew his threat of new tariffs on European nations and signalled a softer stance on Greenland, saying a 'framework of a future deal' had been agreed," another PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying.