New Delhi, Jan 30: Silver and gold futures dropped sharply on Friday as traders booked profits following record-breaking gains, amid a rebound in the US dollar and bearish global market sentiment.
On the Multi Commodity Exchange (MCX), March silver futures fell Rs 12,169, or 3.04%, to Rs 3,87,724 per kilogram in 8,710 lots. The metal had surged nearly 9% to a record Rs 4,20,048 per kg on Thursday, before closing at Rs 3,99,893 per kg.
Similarly, February gold futures declined Rs 2,162, or 1.28%, to Rs 1,67,241 per 10 grams in 3,965 lots, after hitting an all time high of Rs 1,80,779 per 10 grams in the previous session.
“After reaching record highs, profit taking was inevitable as the US dollar rebounded sharply,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd. He noted that domestic prices corrected more than international benchmarks, raising parity concerns.
Globally, Comex April gold futures fell USD 118.06, or 2.2%, to USD 5,236.74 per ounce, retreating from a lifetime high of USD 5,626.80. Comex silver futures declined nearly 4% to USD 110.26 per ounce, after touching a record USD 121.78 in the previous session.
Despite the pullback, analysts said gold and silver remain on track for their strongest monthly gains since the 1980s, fueled by economic and geopolitical uncertainties. “Silver is set for a more than 50% gain in January, marking its best monthly performance on record,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Traders are now awaiting US Producer Price Index (PPI) data, which could influence the next moves in precious metal markets.