Gold And Silver Prices Crash Sharply On MCX After Record Highs, Buyers Get Relief
Gold And Silver Prices Drop: Gold Near ₹1.63 Lakh, Silver Falls Over ₹3,500; Check City-Wise Prices
Silver plunges up to ₹36,000 per kg while gold drops over ₹10,000 per 10 grams amid profit booking and a stronger dollar
Gold and silver prices on the Multi Commodity Exchange (MCX) witnessed a sharp correction on Friday, slipping steeply from record highs reached in the previous session. The sudden fall triggered panic among investors but brought much-needed relief to consumers, especially ahead of the wedding season.
MCX silver prices recorded the steepest fall, crashing by nearly 9 percent in early trade. March silver contracts slipped as much as ₹36,393 per kg to touch an intraday low of around ₹3.63 lakh per kg. From its recent peak of over ₹4.20 lakh per kg, silver has now corrected sharply, erasing a large portion of recent gains in a single session.
Gold prices also saw a significant decline. MCX gold futures for April opened nearly 2 percent lower at ₹1,80,499 per 10 grams compared with the previous close of ₹1,83,962. Selling pressure intensified through the session, dragging prices down by over 4.5 percent, or nearly ₹8,400 per 10 grams. In intraday trade, gold slipped below the ₹1.60 lakh level, offering relief to physical buyers after weeks of relentless price rise.
The correction comes after an exceptional rally in precious metals. Gold prices have surged more than 24 percent so far in January, heading for a sixth consecutive month of gains and marking the biggest monthly rise since January 1980. Silver has been even more volatile, rising nearly 62 percent this month and touching all-time highs before Friday’s crash.
Market experts attribute the sudden fall largely to aggressive profit booking. With gold and silver hitting historic levels, large investors and traders began exiting positions to lock in gains. The heavy selling pressure at one go led to a sharp correction across MCX contracts.
Another key factor weighing on prices is the strength in the US dollar. A firmer dollar typically makes commodities priced in dollars more expensive for global buyers, dampening demand. The dollar index edged higher after the US Federal Reserve decided to keep interest rates unchanged, adding pressure on precious metals in international markets.
Globally, spot gold prices slipped nearly 1 percent to around $5,346 per ounce after hitting a record $5,594 in the previous session. Spot silver also eased after touching its lifetime high earlier in the week. Despite the correction, analysts point out that gold remains on track for its strongest monthly performance in decades due to sustained safe-haven demand driven by global geopolitical and economic uncertainty.
In the domestic market, expectations around the Union Budget on February 1 have also influenced sentiment. There is speculation that the government may announce changes in import duties on gold, which could impact prices further. Additionally, easing geopolitical tensions and signals from the US regarding global trade and diplomacy have slightly reduced safe-haven demand in the short term.
While investors have taken a hit due to the sharp fall, the correction has come as a relief for consumers. With wedding season demand picking up, lower gold and silver prices could boost physical buying in the coming days. Jewellers expect footfall to improve if prices remain stable at these lower levels.
Market participants, however, caution that volatility is likely to remain high. Gold and silver prices are expected to react sharply to global cues, currency movements, central bank signals and budget-related announcements in the days ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to consult certified financial experts before making any investment decisions.
