Gold and Silver Prices Experience Historic Crash Amid Global Market Selloff
In a dramatic turn of events, gold and silver prices have witnessed one of their most significant declines in decades. The precious metals market was swept by a massive selloff, resulting in unprecedented losses for investors and traders alike.
Gold Prices Slump Below $5,000 Mark
Gold prices experienced a staggering decline of more than 12%, falling below the critical threshold of $5,000 per ounce. This represents the most substantial daily drop since the early 1980s, marking a historic moment in commodity trading history. The spot gold price ultimately closed 8.9% lower at $4,894.23 per ounce in New York trading sessions.
Silver Prices Crash with Record Intraday Decline
Silver prices faced an even more severe downturn, crashing by an astonishing 36% in what market analysts are calling a record intraday decline. The precious metal settled at $85.20 per ounce, reflecting a 26% plunge from previous trading levels. This dramatic fall has sent shockwaves through the broader metals markets.
Trigger: US Dollar Surge and Federal Reserve Speculation
The sudden crash in gold and silver prices was primarily triggered by a surge in the US dollar following reports that the Donald Trump administration was preparing to nominate Kevin Warsh for the position of US Federal Reserve chair. This move was later confirmed, creating uncertainty in global markets and prompting investors to shift away from precious metals.
MCX Gold and Silver Prices Reflect Global Trend
The Multi Commodity Exchange of India (MCX) witnessed similar dramatic movements in gold and silver prices as the global selloff reached Indian markets.
Special Trading Session Announcement
The MCX has announced a special trading session today, Sunday, in anticipation of the Union Budget 2026 presentation by Finance Minister Nirmala Sitharaman in Parliament. Trading in the commodity market will remain open for the morning session from 9:00 AM to 5:00 AM, allowing market participants to react to budget announcements.
Friday's Market Performance
On Friday, MCX gold and silver prices crashed significantly as investors booked profits amid the global selloff triggered by the stronger US dollar.
- MCX Gold Rate: Cracked by ₹33,113, representing an 18% decline, to close at ₹1,50,849 per kg
- MCX Silver Rate: Slumped by ₹1,07,971, marking a 27% drop, to settle at ₹2,91,922 per 10 grams
Market Analysis and Investor Response
The simultaneous crash in both international and domestic markets indicates a coordinated response to global economic factors. Investors are reacting to multiple pressures including:
- The strengthening US dollar making precious metals less attractive
- Anticipation of Federal Reserve policy changes under new leadership
- Profit-booking strategies amid market volatility
- Broader metals market selloff affecting all precious metals
Market analysts suggest that this historic decline represents a significant correction in what had been a prolonged bull market for precious metals. The combination of dollar strength and changing monetary policy expectations has created perfect conditions for such a dramatic selloff.
As markets continue to react to these developments, investors are advised to monitor the situation closely. The special trading session on MCX today will provide further insights into how Indian markets are processing these global events alongside domestic budget announcements.
