Gold and Silver Prices Witness Historic Decline; 50-Year Record Broken

Chennai: In March, gold prices witnessed their largest monthly decline since 1975. Over the past 53 days, gold has plummeted by 25 percent, while silver has tumbled by as much as 50 percent.

Gold prices experienced an unprecedented drop of 19.52 percent in March—marking the steepest monthly decline since 1975. Gold, which had touched a high of $5,608 per ounce in January, is currently trading around $4,263. This represents the most severe one-month decline seen in over five decades. Ajay Kedia, MD of Kedia Commodities, noted that while significant declines were previously observed during the financial crises of 1978, 1980, 1983, and 2008, none of them matched the intensity of the current downturn.
Furthermore, the bullion market has witnessed a sharp and rapid correction, with silver falling nearly 50 percent—and gold approximately 25 percent—from their January peaks within a span of just 53 days.

On the MCX, silver had touched an all-time high of ₹4,20,048 but has now slumped to approximately ₹2,06,360. Meanwhile, during the same period, gold fell from ₹1,80,779 to around ₹1,35,800.

The immediate causes behind this sharp decline are largely driven by macroeconomic factors. Massive global sell-offs across all asset classes—including equities, cryptocurrencies, and real estate—have triggered forced liquidation (selling) within the bullion market. Additionally, the US Fed’s hawkish stance—which has dampened expectations of interest rate cuts while fueling speculation regarding potential rate hikes—has significantly strengthened the dollar.
Moreover, heavy ETF outflows and profit-booking following the metals’ ascent to record highs have further accelerated the decline. This is a combined effect of reduced liquidity, a strong dollar, and risk-averse sentiment. “Looking ahead, the decline could persist in the short term. Gold could touch levels of ₹1,15,000 per 10 grams domestically and $3,450–$3,500 in the international market, while silver could slide towards $50—or approximately ₹1,75,000—on the MCX. However, historically, following an initial decline triggered by war, precious metals often recover in the subsequent phase, suggesting that they may find support in the second half of the year,” Kedia noted.