Gold and silver prices on MCX tumbled on Friday amid profit booking, weak global cues, and a stronger US dollar. April gold futures fell nearly ₹2,700 to ₹1,49,396 per 10 grams, while silver March contracts dropped ₹14,600 to ₹2,29,187 per kg.
MCX Gold Falls ₹2,700, Investors Book Profits Ahead of RBI MPC
New Delhi: Gold and silver prices fell sharply on the MCX exchange on Friday morning, 6 February. Weak global cues, a strengthening dollar, and low demand in the local market prompted investors to book profits. MCX gold April contracts fell to ₹1,49,396 per 10 grams, a decline of nearly 2%. MCX silver March contracts, meanwhile, plunged to ₹2,29,187 per kilogram, a steep 6% drop.
Gold prices remained weak internationally as well. US gold futures for April delivery fell nearly 2% to $4,806.50 per troy ounce. A rise of approximately 0.20% in the dollar index made gold more expensive in other currencies. Experts say the strengthening dollar and risk-on global environment forced investors to secure profits.
Gold and Silver prices fall in early trading on MCX; Check rates here
Silver prices also continued to fall. On Friday, MCX silver fell by 6% to ₹2,29,187 per kg. Selling in technology stocks in global markets and a strengthening dollar put pressure on silver. COMEX silver prices also fell by $63.90, marking the second consecutive decline of the week.
Experts say that in addition to profit-taking, the outcome of the RBI Monetary Policy Committee (MPC) meeting will also play a key role in the decline in gold and silver. Investors are awaiting the MPC's policy and interest rate decisions, as these will impact gold demand and prices.
Gold and Silver Roar Back: Dip Buying Sparks Sharp Rebound After Market Turmoil
According to analysts, investors should exercise caution considering potential support levels and risks in gold and silver. A strengthening dollar and global market volatility could continue to cause price fluctuations. However, a potential US Fed rate cut is seen as a positive sign for gold.
Overall, investors have turned cautious after gold and silver prices on MCX fell sharply on Friday. All eyes are on global cues and the RBI MPC outcome.
