Precious metal prices moved lower on Thursday, both in domestic and overseas markets, as investors chose to secure profits following a sharp upward run in recent sessions. The correction coincided with a firmer US dollar and cautious sentiment around global economic signals.
On the Multi Commodity Exchange (MCX), gold futures slipped from their recent peaks. Across major Indian cities, 24-carat gold was quoted in the range of Rs. 1,60,500 to Rs. 1,61,700 per 10 grams in morning trade, marking a mild decline from the previous close.
Silver recorded a steeper fall. In prominent markets including Mumbai, Delhi, Chennai and Bengaluru, prices hovered between Rs. 2,66,000 and Rs. 2,69,800 per kilogram, reflecting heavier profit booking after sustained gains.
The global trend mirrored the domestic movement. On COMEX, spot gold edged lower to around $5,200 per ounce, while silver softened to nearly $89 per ounce, extending the pause after a strong rally in recent weeks.
Market analysts pointed to profit booking as the primary reason for the dip, noting that consecutive gains had prompted traders to trim positions. The strengthening US dollar also weighed on bullion, as a firmer greenback typically reduces the appeal of dollar-denominated commodities.
Despite the short-term weakness, the broader outlook for gold remains constructive. Heightened geopolitical tensions and lingering economic uncertainties have boosted safe-haven demand in recent months, leading to strong inflows into gold-backed exchange-traded funds (ETFs).
Major financial institutions continue to express confidence in gold’s long-term trajectory. JP Morgan has reaffirmed its bullish year-end projection, citing continued central bank accumulation and portfolio diversification trends as structural drivers.
Silver, known for its dual character as both an industrial input and an investment asset, has shown greater volatility. However, some analysts believe it may revisit higher levels later in 2026 if industrial demand and ETF participation remain firm.
Observers emphasised that Thursday’s pullback appears to be a tactical correction rather than a shift in the larger trend. Currency movements, particularly fluctuations in the Indian rupee against the US dollar, also played a role in shaping domestic prices, with silver showing heightened sensitivity.
With uncertainty around trade policies, interest rate expectations and global risks still present, precious metals are expected to retain their relevance as hedging instruments. Investors and buyers are advised to track international bullion trends, currency dynamics and jewellery demand patterns to gauge the next direction in prices.
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