Ludhiana, Feb. 3 -- Gold and silver market in Ludhiana has been jolted by a steep price correction that followed last month's surge, wiping out gains, triggering margin calls and leaving jewellers grappling with weak demand, falling margins and growing panic.

The sharp fall has erased significant market value with gold exchange-traded funds declining by up to 16% and several silver funds sliding by around 15%. Market participants said the sudden correction forced high-risk investors to liquidate positions, accelerating the decline.

In the domestic market, gold prices fell by around Rs.9,050 per 10 grams and silver by nearly Rs.50,000 per kilogram as of 8 pm on Monday, making gold jewellery considerably cheaper than it was just a few wee...