Market experts warn that rising volatility, weak earnings and global uncertainty could trigger a sharp correction in gold and silver rates as investors shift focus back to equities
Traditionally, investors turn to gold when stock markets struggle. Over the past year, the Nifty 50 delivered modest gains of around 8%. In contrast, silver prices surged nearly 250%, while gold prices rose close to 94%, surprising many retail investors with their sharp rally.Rising volatility is another concern. The India VIX, which measures market uncertainty, has jumped nearly 60% in January. When the index moves towards the 15–16 range, it often signals sharp market swings. Portfolio reshuffling ahead of the Budget has further added to this instability.Global developments are also weighing on sentiment. Changes in US trade policies, tariffs imposed on countries like South Korea, and uncertainty around India-US trade negotiations are creating pressure on Indian markets. Analysts caution that new US regulations could impact India’s export-driven sectors.According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, a market crash often pushes investors to sell gold and silver ETFs to raise cash. Profits from precious metals are typically booked to buy beaten-down stocks. This can trigger sharp corrections in gold and silver prices. Some analysts believe silver’s 250% rally has created a bubble that could burst.Kotak Securities analysts warn that if markets crash, silver prices could temporarily fall by 25% to 30% as investors are forced to sell assets to cover losses. However, experts add that such corrections are likely to be short-lived, with long-term global support remaining strong for gold.Overall, Indian markets are at a crucial juncture. Budget announcements and US trade policies will play a key role in determining the next market move. Experts advise investors to stay cautious and avoid chasing gold or silver purely based on past returns.Disclaimer: This content is for informational purposes only. The views and opinions expressed belong to market analysts and brokerage firms, not News18. Market conditions can change rapidly. Investors are advised to consult certified financial experts before making investment decisions.
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There may be good news for gold buyers and silver investors. Market experts say gold and silver prices could see a sharp correction in the coming weeks. India’s stock markets are going through intense volatility, driven by global geopolitical tensions, foreign institutional investors pulling out funds, and uncertainty ahead of the 2026 Union Budget. Analysts warn that if expectations are not met, markets could slide further.
