Gold and silver extended their decline for a third straight session on Monday as investors rushed to lock in profits, triggering a sharp correction in precious metal prices across domestic and global markets. The sustained selling has erased a significant portion of recent gains, catching many traders off guard.

On the Multi Commodity Exchange (MCX), gold contracts scheduled for early April delivery witnessed a steep fall, slipping by nearly three percent in morning trade. Silver saw even heavier losses, plunging around six percent, reflecting heightened volatility and aggressive unwinding of positions in the bullion segment.

The weakness was not limited to Indian markets. International prices also came under pressure, with both gold and silver trading sharply lower during Asian hours. Analysts noted that the synchronized fall indicates a broader shift in sentiment rather than a region-specific trigger.

Market participants pointed to tighter trading conditions as a major catalyst. The Chicago Mercantile Exchange (CME) has announced a hike in margin requirements for gold and silver futures across risk categories. This move will require traders to commit more capital to maintain their positions, making speculative trades more expensive.

For gold futures, margin levels are being raised for both standard and higher-risk positions, while silver futures will see an even steeper increase in required margins. According to experts, such changes often prompt traders to reduce exposure quickly, leading to abrupt price drops.

“The combination of profit booking and increased margin obligations has accelerated the fall,” said a commodities analyst, adding that higher margins typically reduce short-term liquidity and discourage leveraged bets.