MCX Silver Crashes To Hit 15% Lower Circuit, Gold Falls 10%: Why Is Bullion Market Falling?

Silver prices crashed to the lower circuit of 15%, while gold tumbled sharply on Friday amid heavy profit-booking, triggering extreme volatility across the bullion complex on the Multi Commodity Exchange

of India (MCX).

Silver futures plunged as much as 15%, hitting the lower circuit in intraday trade, while gold contracts slid nearly 10%, marking one of the sharpest single-session declines in recent years. The steep sell-off came after an extended rally in precious metals, prompting traders to lock in gains amid shifting global cues.

Market data showed intense selling pressure across bullion and base metals, with MCX iCOMDEX indices also reflecting broad-based weakness. Gold and silver prices saw sharp intraday swings before stabilising marginally, underscoring heightened volatility in commodities.

On Thursday, gold prices had surged to cross record Rs 1.75 lakh per 10 grams and silver rates jumped to over Rs 4 lakh per kg.

Why Is Bullion Market Fall?

Analysts said the sharp correction reflects stretched valuations after the recent surge in bullion prices, with traders now closely tracking global monetary policy signals, US political developments and risk sentiment for further direction. While near-term volatility is expected to remain elevated, market participants are cautious ahead of fresh cues from global central banks and macroeconomic data.

Kaynat Chainwala, assistant vice-president (commodity research) at Kotak Securities, said bullion prices witnessed a sharp reversal on global profit-taking and broader risk-off sentiment. “Bullion prices saw a sharp reversal, with gold sliding toward $5,100 per ounce and silver toward $108 per ounce on profit-taking, compounded by a broader sell-off across global markets,” she said.

According to Chainwala, the trading session remained highly volatile, with both metals rebounding from intraday lows. “The session was highly volatile, with both metals rebounding from intraday lows to close at $5,375 per ounce and $115.7 per ounce, respectively,” she said.

However, selling pressure resurfaced in the subsequent session. “Today, gold slipped below $5,100 per ounce and silver dipped below $105 per ounce amid continued profit-taking and reports of President Donald Trump’s imminent nomination of inflation hawk Kevin Warsh as the next Federal Reserve chair,” Chainwala added.

She also pointed out that easing political uncertainty in the US weighed on safe-haven demand. “Trump and Senate Democrats reaching a tentative deal to avoid a US government shutdown further pressured haven assets,” she said.

US President Donald Trump said he intends to announce his nominee to replace Fed Chair Jerome Powell, as speculation intensifies over who will lead the central bank after Powell steps aside in May.

“So, a potentially less dovish Fed Chairman pick, a rebound in the dollar and gold giving way to overbought conditions have contributed to the decline in the price of the precious metal,” Reuters quoted KCM Chief Trade Analyst Tim Waterer as saying.

“Rumours that Kevin Warsh will replace Jerome Powell as Fed Chair has weighed on gold during Asian trade,” Matt Simpson, Senior Analyst at StoneX, said, according to the report.