New Delhi: Precious metal prices witnessed a steep decline in the national capital on Friday, as investors continued profit-booking for the second consecutive session. The sharpest fall was seen in silver, which tumbled nearly five per cent in a single day, leaving traders and investors surprised.
According to the All India Sarafa Association, silver prices dropped by ₹13,000, or 4.85%, settling at ₹2,55,000 per kilogram (inclusive of all taxes). A day earlier, silver had already recorded a massive fall of ₹30,300, closing at ₹2,68,000 per kg on Thursday.
This means that within just two trading sessions, silver has fallen by a staggering ₹43,300 per kg.
Gold Prices Also Fall Sharply
Gold prices also saw a notable decline. Gold of 99.9% purity slipped by ₹3,400, or 2.12%, to settle at ₹1,57,200 per 10 grams (inclusive of all taxes). On Thursday, gold had closed at ₹1,60,600 per 10 grams.
Why Did Precious Metals Decline?
Bullion traders attributed the sharp fall in domestic prices primarily to heavy profit-booking at higher levels. With gold and silver having reached record highs in recent sessions, investors chose to lock in gains, triggering a sudden correction in prices.
Global Market Sees Strong Recovery
Interestingly, while domestic prices weakened, global precious metals showed signs of recovery later in the session. After witnessing early losses, gold and silver prices in the international market bounced back strongly, rising by over four per cent.
- Spot silver surged by $3.02 (4.26%) to trade at $74 per ounce. Earlier in the day, silver had dropped nearly 10%, touching a low of $64.08 per ounce.
- Spot gold jumped by $106.74 (2.23%) to reach $4,887.30 per ounce, after hitting an intraday low of $4,654.86 per ounce.
Expert View
Praveen Singh, Commodity Chief at Mirae Asset Sharekhan, stated that spot gold opened with weakness and fell to around $4,654 per ounce, but later recovered sharply and gained nearly two per cent, trading close to $4,880 per ounce.
He added that weak US employment data provided support to precious metals, although optimism around possible progress in US-Iran talks capped further gains.
Market Outlook
With volatility rising in both domestic and global markets, analysts believe precious metals may continue to fluctuate sharply in the coming days. Investors are advised to stay cautious as profit-booking and international developments remain key drivers of price movement.
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