MUMBAI, India — Gold prices edged lower while silver posted sharp losses on Friday as investors booked profits and the U.S. dollar strengthened amid a broad selloff in global technology stocks.
Gold futures for February delivery on the Multi Commodity Exchange fell 0.97% to Rs 1,50,590 per 10 grams during intraday trade. Silver futures for March dropped 3.71% to Rs 2,34,775 per kilogram, after hitting a steeper decline earlier in the session.
Silver prices had fallen as much as 6% to an intraday low of Rs 2,29,187 per kilogram before recovering part of the losses, reflecting heightened volatility in the precious metals market.
Analysts attributed the pullback to a stronger dollar, which was on track for its best weekly performance since November and hovering near a two-week high. A firmer dollar tends to pressure commodities priced in U.S. currency by making them more expensive for holders of other currencies.
The sharp correction in silver has revived concerns over stretched valuations, even as market participants said longer-term fundamentals for the metal remain supportive. Analysts noted that silver is particularly vulnerable to sharp swings during periods of market stress due to its dual role as both a precious and industrial metal.
Market participants described the decline in gold and silver as a technical correction rather than a shift in the broader trend. Longer-term drivers such as geopolitical uncertainty, central bank demand, and macroeconomic risks are still seen as supportive for precious metals.
Gold’s broader uptrend in international markets is viewed as intact, with the recent dip largely reflecting profit-taking and consolidation after a strong rally. Analysts said this kind of price digestion is typical during extended upward moves.
Investors were advised to consider staggered allocations instead of lump-sum investments to manage entry risk amid ongoing volatility.
In the domestic market, strong support for gold futures is seen in the Rs 1,37,000 to Rs 1,42,000 range, while resistance is expected around Rs 1,65,000 to Rs 1,75,000. For silver, analysts said a sustained move above key international resistance levels could revive upside momentum, with the medium- to long-term outlook supported by steady industrial demand and structural supply constraints. (Source: IANS)
