Gold & Silver Crash: Prices Drop Over 5% Amid Profit Booking...

Gold & Silver Crash: Prices Drop Over 5% Amid Profit Booking And Bubble Fears

Gold and silver Crash: After the record rally of gold and silver year-to-date this year, both bullions seem to lose the shine due to fatigue among investors’ side. At the international spot market, gold dropped 5.24 per cent to trade $4,114, while silver fell 6.70 per cent to come down below $50-mark. Both gold and silver rallied phenomenally in 2025, outpacing other asset classes by climbing over 60 per cent year-to-date. In the international spot market, silver was trading at $48.79 with a fall of 6.66 per cent. The drop in bullions is also earmarked the profit-booking among investors which are looking to make the most amid the hot rally and growing concern over the formation of bubble in bullion. Tim Waterer, chief market analyst at KCM Trade told Bloomberg that profit taking moves started to snowball. He added that traders and investors are looking to make the profit at high levels which have never seen before in the gold market. Prices of the yellow metal have surged over 60% this year. Gold’s rally has been fuelled by strong safe-haven demand, aggressive central bank purchases, a weakening rupee, and expectations of further rate cuts by the US Federal Reserve. Other metal silver and platinum also followed the upward trajectory. Unlike from gold, silver has an industrial use with experts indicating supply-demand deficit and positive gold-to-silver ratio. Gold price for 24K stood at Rs 1,30,570 per 10 gram in India at the end of Tuesday, October 21. HSBC Still Expects Gold To Touch $5000 HSBC expects gold to maintain its momentum even after the festive rush. The bank’s report suggests that gold could surge to $5,000 per ounce by the first half of 2026, a rise of nearly $1,000 from current levels. The forecast is driven by persistent geopolitical tensions, global economic uncertainty and the entry of long-term investors treating gold as a safe asset rather than a quick profit instrument. Earlier, HSBC had projected an average gold price of $3,355 per ounce for 2025. This has now been revised to $3,455. For 2026, the estimate has been sharply increased from $3,950 to $4,600 per ounce. These figures, also cited by Reuters, reflect a shift in market behaviour where buyers are holding their gold instead of booking profits during price spikes.

Both gold and silver rallied phenomenally in 2025, outpacing other asset classes by climbing over 60 per cent year-to-date.

In the international spot market, silver was trading at $48.79 with a fall of 6.66 per cent.

The drop in bullions is also earmarked the profit-booking among investors which are looking to make the most amid the hot rally and growing concern over the formation of bubble in bullion.

Tim Waterer, chief market analyst at KCM Trade told Bloomberg that profit taking moves started to snowball. He added that traders and investors are looking to make the profit at high levels which have never seen before in the gold market.

Prices of the yellow metal have surged over 60% this year. Gold’s rally has been fuelled by strong safe-haven demand, aggressive central bank purchases, a weakening rupee, and expectations of further rate cuts by the US Federal Reserve.

Other metal silver and platinum also followed the upward trajectory. Unlike from gold, silver has an industrial use with experts indicating supply-demand deficit and positive gold-to-silver ratio.

Gold price for 24K stood at Rs 1,30,570 per 10 gram in India at the end of Tuesday, October 21.

HSBC Still Expects Gold To Touch $5000

HSBC expects gold to maintain its momentum even after the festive rush. The bank’s report suggests that gold could surge to $5,000 per ounce by the first half of 2026, a rise of nearly $1,000 from current levels. The forecast is driven by persistent geopolitical tensions, global economic uncertainty and the entry of long-term investors treating gold as a safe asset rather than a quick profit instrument.

Earlier, HSBC had projected an average gold price of $3,355 per ounce for 2025. This has now been revised to $3,455. For 2026, the estimate has been sharply increased from $3,950 to $4,600 per ounce. These figures, also cited by Reuters, reflect a shift in market behaviour where buyers are holding their gold instead of booking profits during price spikes.