Gold prices experienced a moderate fall, while silver saw a decline of over 3% on Friday, attributed to a stronger dollar and a slump in global technology stocks. MCX gold February futures dropped by 0.97% to Rs 1,50,590 per 10 grams around 10.40 am intraday. Similarly, MCX silver March futures plunged by 3.71% to Rs 2,34,775 per kg.
On the MCX platform, silver prices initially dropped by as much as 6% to Rs 2,29,187 per kg during the session before staging a strong recovery. The surge in the US dollar’s strength this week, nearing a two-week high, made commodities priced in dollars more costly for holders of other currencies.
The sharp correction in silver prices has raised concerns about overvaluation and increased volatility, although analysts believe that the metal’s long-term fundamentals remain positive. Investment bank JP Morgan cautioned that silver’s high valuations could lead to significant downside risks during market turbulence, but short-term downside may be limited, paving the way for a recovery next year.
Experts described the recent drop in precious metal prices as a “technical correction,” emphasizing that factors like geopolitical uncertainties, central bank purchases, and macroeconomic instability continue to influence the market. Despite the recent decline, the overall upward trend in COMEX gold remains intact, with the decrease seen as profit-taking and healthy price adjustment rather than a reversal in trend.
Market analysts recommended investors to consider staggered investments instead of lump-sum transactions to mitigate entry risks. For MCX gold futures, strong support levels are identified in the Rs 1,37,000 to Rs 1,42,000 range, while resistance is expected in the Rs 1,65,000 to Rs 1,75,000 range. In terms of COMEX silver, a sustained breakthrough above $85–$92 could trigger upward momentum towards $95–$105, with a positive medium- to long-term outlook driven by stable industrial demand and supply constraints.
