Gold, Silver Prices Fall Sharply; Silver Slides Over ₹5,000 on MCX

New Delhi: Gold and silver prices declined sharply on Tuesday, with both metals opening lower on the MCX. April gold futures fell by over ₹800 per 10 grams shortly after the market opened, while March silver futures dropped more than ₹3,000 per kilogram. Later, silver extended its losses to over ₹5,000, while gold recovered slightly, ending the day with a fall of around ₹480.

Previous Gains Reversed

A day earlier, both metals had seen gains. Gold had closed at ₹1,58,394 per 10 grams, up ₹328, and March silver had risen ₹125 to ₹2,62,745 per kilogram. In the Delhi Sarafa market, silver had surged over 6% to ₹2.72 lakh per kilogram, while gold rose nearly 1% to ₹1.58 lakh per 10 grams.

Trading Insights

Manoj Kumar Jain of Prithvi Finmart noted that gold and silver have shown significant volatility recently. He expects silver to hold near $65 per troy ounce this week, while gold may remain around $4,680 per troy ounce. Fluctuations in the US dollar index, partial government shutdowns in the US, and ongoing geopolitical tensions are expected to continue driving price volatility.

Live Rates in Delhi

• Gold (22 Carat Standard, 8 grams): ₹1,15,928
• Gold (24 Carat, 8 grams): ₹1,26,456
• MCX April Gold Futures: ₹1,56,001 per 10 grams (down ₹2,005)
• MCX March Silver Futures: ₹2,57,715 per kilogram (down ₹4,905)

Reasons for the Drop

Investors awaited key US economic data, including January jobs numbers and Friday’s inflation report, which could influence the Federal Reserve’s interest rate decisions. This cautious stance contributed to the sell-off in precious metals futures.

Market Recovery Context

Monday had seen a rebound due to a weaker US dollar and renewed buying interest. HDFC Securities senior analyst Soumil Gandhi explained that gold rose as the dollar index fell approximately 0.30% to 97, supporting precious metal prices. Similarly, analysts from Lemonn Markets Desk noted that the recent sharp decline prompted a recovery as traders awaited major economic indicators and policy signals.

Silver and Gold ETFs

Gold and silver ETFs also showed gains on Monday. Among the top five silver ETFs, Kotak Silver ETF rose 9.4%, while HDFC Silver ETF, Nippon India Silver ETF, ICICI Prudential Silver ETF, and SBI Silver ETF gained between 8.2% and 8.7%. International silver prices jumped around 6.7% to nearly $83 per ounce, while gold rose about 1% to $5,012.94 per ounce.