Silver Prices Tumble Rs 7,500, Gold Gains Rs 2,200 in Delhi Markets
In a significant market movement on Tuesday, silver prices experienced a sharp decline of Rs 7,500 per kilogram in the national capital, representing a drop of nearly 3 percent. Simultaneously, gold prices moved in the opposite direction, registering a notable increase of Rs 2,200 per 10 grams. This divergence occurred amid a firm US dollar and cautious trading sentiment.
Domestic Market Details and Price Movements
According to data from the All India Sarafa Association, silver prices dropped to Rs 2,64,500 per kilogram, inclusive of all taxes, from Monday's closing level of Rs 2,72,000 per kilogram. This substantial decline reflects heightened selling pressure and profit-booking activities in the precious metals segment.
In contrast, gold of 99.9 percent purity climbed by 1.4 percent to reach Rs 1,60,700 per 10 grams, compared with the previous session's close of Rs 1,58,500. Market analysts attribute this gain to sustained buying interest from both jewellers and investors, marking the second consecutive day of upward movement for the yellow metal.
Analyst Perspectives and Global Market Context
Saumil Gandhi, senior analyst for commodities at HDFC Securities, noted that gold traded with modest gains while traders awaited fresh macroeconomic cues. "Both gold and silver are currently fluctuating within a broader range as markets enter a near-term consolidation phase," Gandhi explained, highlighting the cautious approach adopted by market participants.
In international markets, spot silver declined by $1.13, or 1.37 percent, to settle at $82.16 per ounce. Gold traded marginally lower at $5,052.43 per ounce, reflecting similar cautious sentiment in global commodity markets.
Key Economic Data and Federal Reserve Policy Outlook
Jateen Trivedi, VP research analyst for commodity and currency at LKP Securities, emphasized that market participants are closely monitoring upcoming US economic data releases. "Key US retail sales data, followed by unemployment and nonfarm payroll numbers later in the week, are likely to inject volatility and shape expectations around the Federal Reserve's policy stance," Trivedi stated, underscoring the importance of macroeconomic indicators in determining precious metals pricing.
Futures Market Activity and Profit-Booking Trends
The futures segment witnessed significant selling pressure as traders engaged in profit-booking activities. On the Multi Commodity Exchange, silver futures for March delivery fell by 2.06 percent to Rs 2,57,198 per kilogram. Gold futures for April delivery slipped by 0.43 percent to Rs 1,57,389 per 10 grams, reflecting the broader trend of cautious trading.
Gaurav Garg, research analyst at Lemonn Markets Desk, commented on the market dynamics, stating that profit-taking and a firm US dollar weighed on bullion prices. "Overall sentiment remains cautiously constructive with investors awaiting further macro and policy cues," Garg added, indicating that market participants are adopting a wait-and-watch approach amid uncertain economic conditions.
The contrasting movements in silver and gold prices highlight the complex interplay of domestic demand, international market trends, and macroeconomic factors influencing precious metals markets. As traders and investors navigate this volatile landscape, attention remains focused on upcoming economic data releases and central bank policy decisions that could provide clearer direction for commodity pricing in the coming sessions.
