Gold and silver prices witnessed a sharp sell-off on Friday, retreating steeply from record highs touched in the previous session, as a stronger US dollar and profit-taking triggered a correction in the bullion market.
On the Multi Commodity Exchange (MCX), gold prices fell sharply in early trade. April gold futures opened 1.88% lower at Rs.1,80,499 per 10 grams, compared with the previous close of Rs.1,83,962. The decline came a day after gold had surged to an all-time high of Rs.1,93,096 per 10 grams, highlighting the volatility gripping precious metals.
Silver prices saw an even steeper fall. MCX silver futures opened nearly 4% lower at Rs.3,83,898 per kg, sliding from Thursday’s close of Rs.3,99,893. In the previous session, silver had scaled a record peak of Rs.4,20,048 per kg before succumbing to heavy selling pressure.
According to media reports, the sharp fall in domestic prices mirrored weakness in global markets. Spot gold slipped as much as 3% to $5,232.57 per ounce during Asian trade, after briefly plunging over 5% earlier in the session. This came after gold hit a historic high of $5,594.82 per ounce on Thursday. US gold futures for February delivery also declined, falling about 1.8% to $5,225 per ounce, media reports said.
Spot silver was equally volatile, dropping as much as 3.6% to $111.99 an ounce after touching a record high of $121.64 in the previous session. Other precious metals were also under pressure, with platinum sliding 3.7% and palladium easing nearly 4%.
Analysts attributed Friday’s crash to a combination of factors, including a rebound in the US dollar and growing speculation around US monetary policy leadership. The dollar index edged higher after the Federal Reserve decided to keep interest rates unchanged, making dollar-priced commodities such as gold more expensive for overseas buyers.
Market sentiment was further unsettled by reports that US President Donald Trump is expected to announce a new Federal Reserve chair, replacing Jerome Powell. Speculation that former Fed Governor Kevin Warsh—viewed as less dovish—could get the nod weighed heavily on gold prices. Analysts noted that expectations of a more hawkish policy stance, coupled with overbought market conditions, triggered aggressive profit-booking.
Despite Friday’s steep decline, the broader trend for bullion remains strongly bullish. Gold prices have surged more than 24% so far in January, heading for their sixth consecutive monthly gain and their biggest monthly jump since January 1980. Silver has rallied even more dramatically, soaring over 60% this month and on track for its best-ever monthly performance.
Safe-haven demand driven by persistent geopolitical tensions and global economic uncertainty has been a key driver of the rally. However, Friday’s crash underscores how quickly sentiment can shift after parabolic price moves, with volatility likely to remain elevated in the near term.
Also Read: Gold, Silver Rally To Fresh Peaks On Global Uncertainty And Rate Cut Buzz https://www.vibesofindia.com/gold-silver-rally-to-fresh-peaks-on-global-uncertainty-and-rate-cut-buzz/
