Gold & Silver Biggest Crash: The festive sparkle of Diwali 2025 has faded into an unexpected financial reality for precious metal investors across India. In a dramatic reversal that caught markets off guard, gold and silver prices have witnessed their steepest decline in over a decade, marking one of the most significant corrections in recent memory.
On October 21, just a day after the Diwali celebrations, gold prices plummeted by a staggering 6.3% internationally—the sharpest single-day drop since 2013. Silver experienced an even more brutal crash, tumbling 8.7% in what became its worst performance since February 2021. This sudden collapse has left investors questioning whether the remarkable bull run that characterized 2025 has finally come to an end.
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The Perfect Storm Behind the Crash
Multiple factors converged to trigger this historic selloff. The primary catalyst was aggressive profit-booking by investors who had enjoyed spectacular gains throughout the year. Gold had surged nearly 60% in 2025, touching an all-time high of $4,381 per ounce on October 20, while silver had doubled in value. Many traders viewed these unprecedented levels as the perfect opportunity to cash out their positions.
A strengthening US dollar added significant pressure on precious metals, making them more expensive for international buyers. When the dollar index climbed 0.4%, it reduced the attractiveness of gold and silver as safe-haven investments. Additionally, emerging signs of progress in US-China trade negotiations reduced geopolitical tensions, diminishing the need for protective assets.
Indian Markets Feel the Impact
The correction hit Indian markets with equal force. Gold prices in Delhi fell from ₹1,34,800 per 10 grams to approximately ₹1,25,000, while silver crashed from ₹1,71,000 per kilogram to around ₹1,50,000. This dramatic decline came immediately after Dhanteras 2025 recorded historic sales of ₹1 lakh crore, with consumers purchasing approximately 46 tonnes of gold despite record-high prices.
What Lies Ahead?
Market analysts suggest the correction may be temporary rather than the end of the bull market. Key support levels for gold stand around $4,000 per ounce (₹1,24,000 per 10 grams), while silver could find stability near ₹1,42,000. Fundamental drivers including central bank buying, inflation concerns, and global economic uncertainty remain intact.
Experts recommend a cautious approach, advising investors to wait for price stabilization before making fresh purchases. While short-term volatility is expected, the long-term outlook for precious metals remains positive, with some forecasts predicting gold could reach ₹1,77,000 within two years.