Gold and silver surged sharply in September 2025, delivering impressive returns to investors, but the market is now under pressure from profit-booking. Last month, gold returned 11.85%, making it one of the highest monthly gains in two decades. This performance is reminiscent of the financial crisis years of 2008, 2009, and 2011, when gold delivered double-digit returns. However, current technical charts indicate that the market is currently overbought.
According to commodity expert Ajay Kedia, if the US government shutdown becomes clear or there is relief on a key geopolitical front – such as a ceasefire, gold and silver could fall sharply. What’s Happening: After reaching recent highs, both gold and silver witnessed heavy selling on Tuesday. Gold prices fell by nearly ₹2,000 per 10 grams, and silver by ₹3,650 per kilogram.
The strengthening global dollar and rising US bond yields are also putting pressure on precious metals. Experts say investors have taken advantage of the recent rally to book profits from safe-haven assets. Domestically, high prices have also reduced demand for jewelry, further adding to the pressure on the market. Although these prices are primarily based on the MCX (Multi Commodity Exchange), they will also impact the local bullion market.
Silver’s recent rise was even sharper than gold’s, but it is now also experiencing profit-booking. Silver has fallen from its peak to ₹3,650 per kilogram, which was considered a major correction. According to experts, this decline is likely to deepen in the short term.
Technical analysis also confirms that both gold and silver are currently in the overbought zone. This means that prices have risen sharply in recent days, and the market may now be trying to balance itself. Experts believe that investors should wait a bit before making new investments. It would be better to postpone purchases until the market cools down a bit.
However, investors who already own gold or silver need not panic. These assets are still considered a strong foundation for a long-term portfolio. Gold has consistently delivered good returns over the past three years, although over a 20-year period, assets like equities have outperformed gold. Therefore, experts recommend that a diversified portfolio is the safest strategy in the long term.
In conclusion, after the recent rally, gold and silver are now in correction mode. In such a situation, investors should avoid taking any hasty decisions and should take the next step only after carefully understanding the market movement.