Gold and silver prices experienced a dramatic plunge on Friday, with investors rushing to book profits following the recent record-breaking highs. This significant downturn marks one of the steepest single-day declines witnessed in the commodity markets in recent months.
Sharp Decline in Precious Metals
On the Multi Commodity Exchange (MCX), silver futures for March delivery plummeted by a staggering 16.97 per cent, equivalent to Rs 67,891, settling at Rs 3,32,002 per kilogram. Simultaneously, gold futures for February delivery tumbled by 9 per cent, or Rs 15,246, closing at Rs 1,54,157 per 10 grams.
Context of the Fall
This sharp fall came immediately after Thursday's record highs, where silver had surged approximately 9 per cent to reach Rs 4,20,048 per kilogram, and gold had touched Rs 1,69,403 per 10 grams before settling at Rs 3,99,893 per kg for silver. Market analysts have attributed this sudden decline to a combination of weak global trends, a strengthening US dollar, and aggressive profit-booking by investors who had capitalized on the previous day's peaks.
Analyst Insights
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, provided crucial insights into the market movement. He stated that silver and gold prices have hit lower circuit levels across all formats, including 'megas' and 'minis' contracts. "This is a strong profit booking that we've seen from the higher side, and ETF prices are down by much more percentage than what we are seeing in the futures," he was quoted as saying by PTI, highlighting the broader impact beyond just futures trading.
Impact on Stock Indices
The broader financial markets also reflected a subdued sentiment. The BSE Sensex concluded the trading session at 82,269.78, registering a decline of 296.59 points, or 0.36 per cent. Similarly, the NSE Nifty closed at 25,320.65, slipping by 98.25 points, or 0.39 per cent, indicating a cautious approach among investors amidst the commodity volatility.
City-Wise Gold Rates Today
The decline in gold prices was evident across major Indian cities, with significant drops observed compared to yesterday's rates. Here is a detailed breakdown:
- Delhi: 24K gold at Rs 16,935 per gram (down Rs 965), 22K at Rs 15,525 (down Rs 885), 18K at Rs 12,705 (down Rs 724).
- Mumbai: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Bengaluru: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Chennai: 24K gold at Rs 17,291 per gram (down Rs 1,037), 22K at Rs 15,850 (down Rs 950), 18K at Rs 13,300 (down Rs 600).
- Kolkata: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Hyderabad: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Ahmedabad: 24K gold at Rs 16,925 per gram (down Rs 965), 22K at Rs 15,515 (down Rs 885), 18K at Rs 12,695 (down Rs 724).
- Jaipur: 24K gold at Rs 16,935 per gram (down Rs 965), 22K at Rs 15,525 (down Rs 885), 18K at Rs 12,705 (down Rs 724).
- Bhubaneswar: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Pune: 24K gold at Rs 16,920 per gram (down Rs 965), 22K at Rs 15,510 (down Rs 885), 18K at Rs 12,690 (down Rs 724).
- Kanpur: 24K gold at Rs 16,935 per gram (down Rs 965), 22K at Rs 15,525 (down Rs 885), 18K at Rs 12,705 (down Rs 724).
This widespread decline underscores the national impact of the profit-booking trend, with Chennai experiencing the most substantial drop in 24K gold prices. Investors and market watchers are now closely monitoring global cues and domestic economic indicators to gauge the future trajectory of precious metal prices in the coming days.
