Gold, Silver, Copper Fall Up to 13% After Record Rally: 4 Key Reasons Explained

Gold, silver and copper prices fell sharply on December 29 after a strong rally earlier this year. The fall came after all 3 metals touched fresh lifetime highs, prompting investors to book profits.

Gold, Silver and Copper Prices Today

• Gold: February futures slipped around 2% to ₹1,37,646 per 10 grams after nearing record highs.
• Silver: March futures dropped nearly 8% to ₹2,32,663 per kg, while other contracts fell up to 10%.
• Copper: January futures plunged about 13% to ₹1,211.05 per kg after hitting an all-time high.

Profit Booking After Strong Rally

After a massive rise through 2025, investors chose to lock in gains. 

Easing Geopolitical Tensions

Hopes of a possible peace deal between Russia and Ukraine reduced demand for safe-haven assets like gold and silver. Improved global stability often weakens prices of precious metals.

China’s Export Restrictions

China announced plans to restrict exports of physical silver from 2026, requiring export licenses. While this signals tighter supply in the long term, near-term uncertainty has unsettled the market and triggered selling pressure.

CME Margin Hike

The CME Group raised the initial margin for silver derivative contracts from $20,000 to $25,000. This forced some traders to cut positions, adding pressure on silver prices.

Impact on Metal Stocks

Following the fall in commodity prices, shares of metal producers such as Hindustan Zinc and Hindustan Copper also declined sharply from their intraday highs.

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Conclusion

The sharp fall in gold, silver and copper prices highlights a classic market correction after a strong rally. While long-term supply concerns remain, short-term factors like profit-booking and policy changes are driving volatility.

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