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Gold and silver prices declined steeply on MCX in early trade after touching lifetime highs in the previous session. Silver tumbled over 4 percent, while gold slipped around 3 percent amid profit booking and a stronger US dollar.
Record Rally Pauses as MCX Gold, Silver See Sharp Correction
New Delhi: Gold and silver prices fell sharply in early trade on Friday on the Multi Commodity Exchange (MCX). After hitting record highs in the previous session, both precious metals slipped under pressure from investor profit-booking and global cues. Silver prices fell nearly 4% on the MCX, while gold fell 3% to below ₹1.78 lakh per 10 grams.
Gold prices for April delivery on the MCX opened at ₹1,80,499 per 10 grams on Friday, down 1.88% from its previous closing price of ₹1,83,962. Gold prices further declined to ₹1,78,444 per 10 grams during trading, a decline of nearly 3%. Earlier on Thursday, MCX Gold had touched an all-time high of ₹1,93,096 per 10 grams.
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Silver prices fell even more sharply. Silver on MCX opened on Friday, down nearly 4%, at ₹3,83,898 per kilogram, compared to its previous close of ₹3,99,893. During trading, silver fell ₹17,209, or 4.30%, to ₹3,82,684 per kilogram. Just a day earlier, silver had touched a record high of ₹4,20,048 per kilogram.
Gold and silver also came under pressure in the international markets. A strong US dollar increased pressure on precious metals. Spot gold fell 0.9% to $5,346.42 per ounce, compared to a record high of $5,594.82 a day earlier. Meanwhile, US gold futures were trading at $5,390.80 per ounce, up 1.3%. Spot silver fell 0.2% to $115.83 per ounce.
Gold prices slip on first day of the week; Silver also sees decline
However, despite the decline, long-term data shows that both gold and silver have seen strong gains in recent months. Gold prices have risen more than 24% so far in January, marking the largest monthly gain since January 1980. Silver has gained nearly 62% this month, marking its best monthly performance to date.
Meanwhile, the dollar index saw a slight increase, supported by the US Federal Reserve's decision to keep interest rates stable. However, the dollar is heading for a second consecutive week of weakness. Market experts say that this decline after the record high could be a part of technical correction, but due to global uncertainties, long-term strength in gold and silver may remain.
