Gold and silver prices saw a decline on Friday following recent record highs, with investors securing profits and the US dollar strengthening. MCX gold February futures dropped by 1.03% to Rs 1,67,656 per 10 grams, while MCX silver March futures fell by 3.42% to Rs 3,86,200 per kg. Silver prices had surged to Rs 4,20,048 per kg previously but then decreased by over 6% to Rs 3,75,900 before stabilizing.
International markets witnessed spot gold prices falling by over 4% to $5,156.64 per ounce before recovering slightly to $5,346.42. Gold has seen a significant increase of more than 20% this year, while silver has gained about 53% year-to-date. Market analysts note a bullish trend overall, despite short-term fluctuations due to profit-taking following a rapid rise.
Experts highlight that while the metal market remains on an upward trajectory, recent price movements have led to overbought conditions, prompting aggressive profit booking. Structural supply deficits and industrial demand are supporting the positive sentiment towards these metals. Market observers point out that a crucial support level for silver stands at Rs 3,75,000 per kg.
The US dollar index rose slightly, supported by the US Federal Reserve’s decision to maintain interest rates and ongoing geopolitical tensions, particularly concerning potential actions against Iran by President Donald Trump. A recent report by WhiteOak Capital Mutual Fund suggests investors consider profit-taking on silver and reallocating funds to diversified Indian equity or blue-chip stocks. The report advises adjusting precious metals allocation to safer levels and refraining from further speculative investments, noting a notable shift in the Gold-to-Silver ratio.
