Gold Rate Falls Rs 33,000/10 Gms, Silver Rate Crashes Rs 160,000/1 kg From January Peak: What Do Analysts Say?

Gold rate in India has crashed by nearly Rs 33,000 for 10 grams of 24 carat and the silver rate in India has nosedived the most by Rs 1.60 lakh in 1 kg from their January peak. Analysts say gold declined by 21% to 24% from its record highs. But silver crashed over 64% from its peak. What are the reasons and should investors worry?

Gold Rates Crash

As of June 21, 2026, 24 carat gold price stood at Rs 1,46,080 per 10 grams. The bullion is already down by 6.5% in June so far, compared to over 4% gains in May 2026.

But the current gold price has also nosedived by Rs 33,700 or 22.4% from its peak of Rs 1,78,850 per 10 grams that was recorded on January 29, 2026. In the first six months of 2026, gold has seen positive monthly performance in January with 19% upside, in February with over 5% gains, and May with around 4.3% surge. The performance in April 2026 was broadly flat.

However, it took only two months deep bearish tone that led to significant fall in gold prices. The worst month for gold in 2026 so far is March where it crashed by nearly 14%. This is because of West Asia conflict which pushed global energy crisis, multi-year high rally in crude oil prices and strengthened dollar.

Every time dollar strengthens, gold becomes less attractive. The reason for dollar to spike is inflationary pressures and fear of rate hikes. The fear looked closer by last week when US Federal Reserve turned hawkish and signaled at least one rate hike in 2026 later. This was enough to take dollar towards 101 mark, a one-year high. And enough to topple gold from the edge.

Gold is not alone. Silver has taken the worst hit from US-Israel-Iran war.

Silver Rates Crash

1Kg silver is currently at its lowest level of June 2026 to Rs 2.50 lakh mark. This is decline of 10.71% in the current month alone. But silver has crashed by Rs 1.60 lakh or 64% from its peak of Rs 4.10 lakh per 1Kg which was witnessed on January 29, 2026.

Unlike gold, silver only saw gains of 47% and 10% in January 2026 and May 2026. Rest of the months till June, this precious metals have been under pressure.

Silver was down by 16% in February 2026, plunged by 15.3% in March 2026, and slipped by 2% in April 2026. June is also turning bearish for silver.

Reasons for the decline are the same as gold.

What Analysts Say On Gold Silver Prices Crash?

As per Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers IFSC LLP, spot gold has dropped by 24% since its January peak of $5,595, and Fed-driven selloff added to the pain.

The reasons are inflation fears from the oil shock, a hawkish rate environment, a stronger dollar, and leveraged positions being unwound. These are cyclical pressures, not a fundamental breakdown, as per the analyst.

That said, he added, "anyone calling the bottom with confidence is guessing. What we can say is that the structural case, sovereign debt at historic highs, persistent central bank accumulation, and growing questions around reserve currency durability, hasn't reversed. Whether this is the entry point or there's more downside, nobody knows."

"But investors with a five-year horizon and no allocation to precious metals should at least be asking the question," added Sawrikar.

Goldman Sachs Cut Gold Price Target

Global brokerage, Goldman Sachs has trimmed its target for spot gold to $4,900 per ounce from earlier $5,400 per ounce, citing institutional outflow in near term and rate hikes expectations as key reason.

Analysts at Goldman are structurally constructive but tactically cautious in gold. They are now expecting rate cut scenario in March 2027 and December 2027.

Simply put, goldman Sachs has reduced its year-end 2026 gold price forecast, mainly because it no longer expects the U.S. Federal Reserve to cut interest rates this year. Instead, the Fed is now seen as staying restrictive for longer, with some policymakers even signaling the possibility of rate hikes.

Also, Goldman reduced its outlook for investment demand through gold-backed ETFs because investors have less reason to buy gold as a hedge against falling rates.

What Should Investors Do?

To investors, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "participants should remain focused on developments surrounding the US-Iran negotiations, as any progress or setback in talks could add further volatility to precious metals. While geopolitical risks may provide volatility, interest rate expectations are currently the dominant driver for gold prices."

Technically, he added, Rs 145000 remains the key support zone for MCX Gold, while Rs 151500 acts as the immediate resistance level. Volatility is expected to remain elevated, with market participants closely tracking US economic data, dollar movement, and geopolitical developments for the next directional trigger.

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