Gold and Silver Prices Crash: Indian Mutual Funds Cap Large Gold Bets

Gold and silver prices plummeted on Indian and global exchanges on June 8, 2026, with MCX silver futures plunging by ‹5,500 per kilogram and gold futures dropping by ‹1,800 per 10 grams. On the global COMEX exchange, gold broke below its critical 200-day moving average to fall under $4,340 per ounce, entering technically oversold territory. The sudden sell-off was triggered by escalating Middle East tensions that drove crude oil prices higher, alongside strong US jobs data that reinforced expectations of prolonged high-interest rates.

In a major regulatory development, three prominent Indian asset management companies (AMCs) have imposed strict purchase restrictions on large institutional investors in gold mutual fund schemes. This strategic move aims to curb surging gold imports and manage heavy inflows without affecting retail investors, who can continue trading normally. The restrictions align with the government's broader objective to reduce non-essential gold imports and preserve foreign exchange reserves, especially after gold's strong rally earlier in the year.

Despite the sharp correction, precious metals staged a late-day recovery from their multi-month lows as hopes of a ceasefire between Israel and Iran improved global investor sentiment. Financial analysts advise Indian retail investors to remain cautious as ongoing geopolitical risks and US Federal Reserve policy shifts continue to drive market volatility. Meanwhile, reports indicate that global central banks are quietly continuing to swap cash reserves for physical gold, signaling long-term institutional support for the metal.