Heavy Profit Booking Triggers Steep Decline in Precious Metals
Gold and silver prices witnessed one of their sharpest single-day declines in recent months in futures trade on Friday, as investors rushed to monetise gains following a rapid surge to record highs.Silver futures plunged nearly 17 percent, while gold futures fell about 9 percent on domestic exchanges, mirroring weak global cues and a strengthening US dollar.
Silver Futures See Record Single-Day Crash
On the Multi Commodity Exchange, silver futures for March delivery tumbled by Rs 67,891, or 16.97 percent, to settle at Rs 3,32,002 per kilogram. This marked the steepest single-day fall for the metal in recent months.The sharp correction followed a strong rally in the previous session, when silver prices surged nearly 9 percent to touch a record high of Rs 4,20,048 per kilogram before closing at Rs 3,99,893 per kilogram.
Gold Futures Slide After Hitting Lifetime High
Gold futures also came under heavy selling pressure as traders booked profits at elevated levels. The February contract dropped by Rs 15,246, or 9 percent, to Rs 1,54,157 per 10 grams.In the prior session, gold prices had climbed almost 9 percent to a lifetime high of Rs 1,80,779 per 10 grams before easing to Rs 1,69,403 per 10 grams on the MCX.
ETFs Mirror Sharp Correction
The selloff extended to exchange traded funds linked to precious metals, with gold and silver ETFs declining by as much as 20 percent in the domestic market, reflecting intensified profit booking across investment formats.Global Cues Add Pressure
The correction in precious metals was also influenced by developments in the United States. Market sentiment weakened amid reports that the US administration is preparing to nominate Kevin Warsh as the next Federal Reserve Chair. Warsh is widely viewed as having a hawkish monetary policy stance.Adding to the uncertainty, US President Donald Trump indicated that an announcement on the successor to Federal Reserve Chair Jerome Powell would be made on Friday.
Meanwhile, the dollar index, which tracks the US currency against a basket of six major currencies, rose 0.33 percent to 96.60, exerting additional pressure on bullion prices.
International Markets Reflect Similar Trend
In overseas markets, silver futures on the Comex for March delivery slumped by USD 19.30, or 16.87 percent, to an intraday low of USD 95.12 per ounce. The metal had touched a record USD 121.78 per ounce in the previous session.Gold futures on the Comex for April delivery also declined sharply, falling by USD 392.1, or 7.32 percent, to USD 4,962.7 per ounce after scaling a lifetime high of USD 5,626.8 per ounce a day earlier.
The sharp pullback highlights the heightened volatility in precious metals as global macroeconomic signals and currency movements continue to influence investor sentiment.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.