Gold and silver prices witnessed a steep fall on Friday, snapping their recent rally as investors rushed to lock in profits following record highs in the previous session. The sharp correction was seen across futures markets and physical retail rates in major Indian cities, reflecting broader weakness in global commodity trends.
On the Multi Commodity Exchange (MCX), silver futures for March delivery recorded one of their biggest single-day declines in recent months. Prices plunged nearly 17 per cent, shedding Rs 67,891 to settle at Rs 3,32,002 per kilogram. Gold futures for February delivery also came under heavy pressure, tumbling around 9 per cent or Rs 15,246 to close at Rs 1,54,157 per 10 grams.
The steep fall came just a day after precious metals touched historic peaks. On Thursday, silver surged close to 9 per cent, hitting a record level of Rs 4,20,048 per kilogram before easing slightly to end the session at Rs 3,99,893 per kg. Gold, meanwhile, climbed to an all-time high of Rs 1,69,403 per 10 grams, driven by strong demand and global uncertainty.
Market participants attributed Friday’s decline largely to profit-booking, coupled with weak international cues and a strengthening US dollar. A firmer dollar often makes commodities priced in the currency more expensive for overseas buyers, reducing demand and putting downward pressure on prices.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, noted that both gold and silver hit lower circuit limits across multiple trading formats, including mega and mini contracts. He highlighted that the sell-off reflected aggressive profit-taking from elevated levels, with exchange-traded fund (ETF) prices showing even sharper percentage declines compared to futures contracts.
The correction in precious metals coincided with a modest downturn in domestic equity markets. The BSE Sensex ended the day lower by 296.59 points, or 0.36 per cent, closing at 82,269.78. The NSE Nifty also slipped, falling 98.25 points or 0.39 per cent to finish at 25,320.65. The broader market sentiment remained cautious as investors weighed global economic signals and currency movements.
Alongside futures trading, gold prices in physical markets across Indian cities also witnessed a significant drop compared to the previous day. In Delhi, 24-carat gold was priced at Rs 16,935 per gram, while 22-carat stood at Rs 15,525 and 18-carat at Rs 12,705 per gram. This marked a fall of Rs 965 for 24K gold, Rs 885 for 22K, and Rs 724 for 18K from Thursday’s levels.
Similar trends were observed in Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, Bhubaneswar, Ahmedabad, Jaipur, and Kanpur, where 24-carat gold hovered around Rs 16,920 to Rs 16,935 per gram. Across most of these cities, prices declined by nearly the same margins as seen in Delhi.
Chennai recorded slightly higher rates compared to other metros, with 24-carat gold priced at Rs 17,291 per gram, 22-carat at Rs 15,850, and 18-carat at Rs 13,300. However, the southern city also saw a sharper fall, with 24K gold dropping by Rs 1,037 compared to the previous day.
Despite the sharp correction, analysts believe the long-term outlook for precious metals remains influenced by global economic uncertainty, central bank policies, and geopolitical developments. However, short-term volatility is expected to continue as investors react to currency movements and shifts in global risk sentiment.
For now, the dramatic plunge serves as a reminder of the swift swings in commodity markets, especially after strong rallies, prompting traders and investors to remain cautious in the near term.