Gold and silver recently surged to record highs before witnessing a sharp correction. While such a fall may appear alarming at first glance, market experts believe this phase resembles a healthy consolidation rather than the end of the rally.
According to Ponmudi R, CEO of Enrich Money, the recent price movement reflects a cooling-off period after an aggressive uptrend.
On the Multi Commodity Exchange (MCX), gold had climbed close to Rs 1,80,000–Rs 1,81,000 before correcting to the Rs 1,55,000–Rs 1,60,000 range. In simple terms, a correction means prices have eased after rising too quickly.
Ponmudi highlights strong buying interest in the Rs 1,45,000–Rs 1,50,000 range. This is referred to as a “support zone” — a price level where buyers typically step in, limiting further downside.
If gold decisively moves above Rs 1,60,800 again, it could potentially rally toward Rs 1,65,000–Rs 1,75,000. For now, the broader trend remains constructive.
Silver has witnessed even sharper swings. On MCX, it surged to nearly Rs 4,20,000 before falling back to the Rs 2,50,000–Rs 2,70,000 band. Such steep corrections naturally create nervousness among investors.
However, Ponmudi identifies a strong support zone between Rs 2,25,000 and Rs 2,60,000. If silver sustains above this band and demand strengthens, prices could gradually move toward Rs 3,00,000–Rs 3,25,000.
Silver, however, is known for higher volatility compared to gold. It tends to rise faster during rallies but also corrects more sharply. This means greater return potential — but also higher risk.
Globally, gold and silver are traded on the COMEX in the United States, where prices are quoted in dollars and significantly influence Indian markets.
Gold corrected from around $5,500 to the $5,000–$5,150 range, while silver fell from above $121 to approximately $80–$87. According to Ponmudi, this appears to be profit-booking — investors locking in gains after a strong rally — rather than a structural breakdown.
For regular investors, this phase does not signal panic. Instead, it suggests consolidation after a historic rise.
Goldappears relatively stable with consistent demand at lower levels.
Silveroffers higher upside potential but comes with sharper price swings.
For jewellery buyers and long-term investors in gold ETFs or digital gold, the correction may present more attractive entry levels compared to recent peaks. For traders, the key factor will be whether identified support zones continue to hold.
The long-term outlook for gold and silver remains constructive. However, investors should expect volatility and price swings. This phase appears more like a pause in the rally rather than a collapse — but disciplined risk management remains essential.
