MUMBAI, India — Gold and silver prices declined on Friday after touching record levels in the previous session, as investors engaged in aggressive profit booking and the U.S. dollar strengthened.
On the Multi Commodity Exchange, gold February futures slipped 1.03 percent to Rs 1,67,656 per 10 grams in intraday trade around 10 a.m. MCX silver March futures fell 3.42 percent to Rs 3,86,200 per kg.
Silver prices had surged to a record Rs 4,20,048 per kg in the previous session before sliding more than 6 percent to Rs 3,75,900, later recovering partially to current levels.
In international markets, spot gold prices dropped more than 4 percent to $5,156.64 per ounce before retracing to $5,346.42. Despite the pullback, gold has gained more than 20 percent so far this year. Silver has risen about 53 percent on a year-to-date basis.
Market watchers said the broader structure for precious metals remains bullish, but sharp intraday swings indicate short-term overheating and tactical profit taking following the recent rally.
Analysts noted that while metals remain in a strong upward channel, prices have turned overbought, triggering aggressive profit booking. They added that structural supply deficits and sustained industrial demand continue to support the longer-term bullish outlook.
According to market participants, key support for silver is seen near Rs 3,75,000 per kg.
The dollar index edged higher, supported by the U.S. Federal Reserve’s pause in interest rates. Geopolitical tensions also remained elevated amid reports that U.S. President Donald Trump is weighing options against Iran.
In a recent report, WhiteOak Capital Mutual Fund advised investors to consider booking profits in silver and rebalancing into diversified Indian equity funds or blue-chip stocks. The report said investors should trim precious metals exposure back to a safe-haven allocation level and avoid chasing further upside, noting that the gold-to-silver ratio has fallen to around 46:1, compared with a 10-year average near 80:1. (Source: IANS)
