Gold Down By 27%, Silver 56% This Year
Gold prices fell to their lowest levels in nearly three months on Friday. A deepening selloff in technology and artificial intelligence stocks prompted traders to liquidate precious metals to cover losses in other assets
Chennai: Gold prices have fallen 27% and silver 56% from their highest levels in January as high crude oil prices and the interest rate hikes by major central banks to cool off inflation has been diminishing the lustre of the precious metals. The sell-off in technology stocks also led to liquidation of gold and silver on Friday.
International spot gold prices have moved down from their record level of $5,419 per ounce on January 28, 2026, to $4004 per ounce levels on Friday. Similarly, silver corrected 56.04% from $121.64 to $53.30 per ounce.
Gold prices fell to their lowest levels in nearly three months on Friday. A deepening selloff in technology and artificial intelligence stocks prompted traders to liquidate precious metals to cover losses in other assets.
“The broader equity downturn intensified after Meta Platforms announced plans to increase capital expenditure, reigniting concerns that technology companies may take on additional debt to fund the artificial intelligence buildout,” said Ajay Kedia, MD, Kedia Commodities.
Gold has remained under pressure from rising oil prices, which heightened inflation concerns and strengthened expectations that interest rates could stay elevated for longer time.
Despite bond yields cooling off and US dollar stabilising, gold has not started making gains. The US-Iran conflict has reversed traditional safe-haven behaviour of gold and silver. With Brent crude trading above $110, rising inflation risks have increased expectations of US Fed rate hikes, pressuring bullion. Simultaneously, equity market weakness and a 37% decline in UAE property transaction volumes during early March reflect broader investor caution and liquidity pressures.
“In the past 25 years, we have seen that gold prices fall when the crude price gets firmer. However, as crude cools off, both gold and silver shoot up, surging to record high levels, we have seen this in 2008-2011 and 2022-2025 as well,” said Kedia.
Growing doubts about the sustainability of artificial intelligence investments has prompted markets to scale back expectations for further Federal Reserve rate hikes and this can potentially provide some support for precious metals.
Kedia finds that gold and silver may see some weakness in the short-term. However, by next year both could move closer to their previous record high levels.