- Silver and gold prices fell sharply by around 10% in futures trade on Thursday
- MCX silver dropped Rs 26,850 to Rs 2,42,000 per kilogram for March delivery
- MCX gold declined Rs 2,310 to Rs 1,50,736 per 10 grams for April contract
Silver and gold prices snapped a two-day rise and declined sharply by around 10 per cent in the futures trade on Thursday amid weak trends in the international markets and a strong US dollar.
On the Multi Commodity Exchange (MCX), silver for March delivery dropped by Rs 26,850, or 10 per cent, to Rs 2,42,000 per kilogram. In the previous session, the white metal had settled at Rs 2,68,850 per kg.
Similarly, gold for the April contract depreciated by Rs 2,310, or 1.51 per cent, to Rs 1,50,736 per 10 grams compared to Wednesday's closing level of Rs 1,53,046 per 10 grams.
"Gold and silver prices reversed recent gains on Thursday, with MCX gold slipping and trading around the Rs 1.49 - 1.55 lakh per 10 grams zone after a sharp rally earlier in the week. MCX silver also corrected deeply, down around 8-10 per cent, as selling pressure intensified and short-term profit-booking dominated trade," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
He added that the pullback comes as global safe-haven demand eased with the US dollar strengthening and geopolitical risk premiums cooling off, prompting traders to unwind extended positions.
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"Silver futures were particularly volatile, dragging down silver exchange-traded funds (ETFs) by double digits along with the fall.
"Despite the near-term correction, key support areas around Rs 1.45 - 1.48 lakh for gold and Rs 2.35 - 2.5 lakh for silver are being watched for fresh accumulation, with medium-term structure still seen as constructive amid broader macro uncertainty," Garg said.
In the international market, silver and gold futures mirrored the downward movement seen in the domestic trade.
On the Comex, the white metal for March delivery dropped by USD 8.85, or 10.48 per cent, to USD 75.55 per ounce. During the intraday trade, it plunged over 13 per cent to hit a low of USD 73.38 per ounce.
"Silver plunged as much as 14 per cent to around USD 73 per ounce, snapping a two-day rebound as precious metals faced renewed selling pressure and heightened volatility. Despite hopes that dip buyers might step in at lower levels, the decline in silver and other metals appears set to continue after the recent rebound failed to hold," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Comex gold for April delivery also fell USD 80, or 1.61 per cent, to USD 4,870.9 per ounce in overseas trade. In the previous session, the yellow metal had crossed the USD 5,000 threshold again, touching a near two-week high of USD 5,113.9 per ounce, before settling at USD 4,950.8 per ounce.
Trivedi attributed the selloff to a stronger US dollar, driven by hawkish signals from the Federal Reserve and expectations of a slower pace of rate cuts.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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