Gold Loses ₹51,000: Gold is experiencing one of its most pronounced corrections after last year’s spectacular performance and gold has lost 51,000 per 10 grams from its record high on MCX. August gold contract futures which had hit a high of 1,69,349 per 10 grams on MCX is now available near the 1,45,800-1,47,000 mark, falling over 13 per cent in just a few days.
Gold Loses ₹51,000
US gold prices have slumped from their recent record of 5,594.82 dollars per ounce and now hover under the 4,000 dollar mark, down almost 29 per cent. Prices on MCX have tumbled as much as 14 per cent after striking an all time high 169,349 per 10 grams at. It has recorded 4 down movements in the row, as much as 8.5 % in a span of 4 trading sessions, falling on US$4000 per oz.
Silver Is Falling Even Faster
Not surprisingly, other precious metals are under pressure as well. Silver has been even weaker. Futures in silver have fallen more than 18% in just four trading days including as much as more than 6% in a single session.
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ETF Investors Response
Investors who poured billions of dollars into gold ETFs during the surge are now dumping positions. The sale of physical gold by fund managers to cover redemptions to these ETF unit holders injects additional supply into the market which is further pressuring the metal alongside other profit booking by institutions.
What Are Global Analysts Saying?
Although it’s been an enormous collapse, analysts don’t think gold’s long term story has broken entirely. Investment Bank ING has cut its short-term outlook for gold to $4300 per ounce in the third quarter of 2026 and $4600 per ounce in the fourth quarter from their previous $4850 and $5000 respectively, amid expectations of a stronger dollar, higher interest rates and reduced investor appetite in the interim. That said, a lot of analysts don’t see the sell off as signaling the end to a long term bull market for the metal.
Key Levels Investors Should Watch
From a technical perspective, the $4,000 per ounce level was considered a major psychological support.
Now that prices have slipped below this mark, traders are closely watching the next support zone around $3,900 per ounce.
On the upside, analysts believe gold would need to regain the $4,200-$4,300 range before bullish momentum can return.
“Spot gold extended its decline to $3,959 per ounce, a fresh seven-month low, while spot silver slipped to $56 per ounce earlier today, with both metals weighed down by a resurgent US dollar and rapidly repricing Federal Reserve rate expectations,” Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said.
“Markets are now pricing in up to two quarter-point increases through December, lifting short-dated Treasury yields and reinforcing dollar strength. Adding to the pressure, the ECB warned that inflation could remain above target for an extended period, broadening the global tightening narrative,” she added.
