Silver and gold prices experienced a dramatic reversal on Thursday, abruptly snapping a two-day recovery streak as futures came under intense selling pressure. This downturn was fueled by weak global market cues and a strengthening US dollar, which collectively dampened investor sentiment towards precious metals.
Domestic Market Plunge
On the Multi Commodity Exchange (MCX), silver futures for March delivery witnessed a staggering decline, plummeting by Rs 26,850. This represents a sharp fall of 10%, with the contract settling at Rs 2,42,000 per kilogram. In the previous trading session, silver had closed at a significantly higher level of Rs 2,68,850 per kg, highlighting the severity of Thursday's sell-off.
Gold prices followed a similar downward trajectory, albeit with a less severe drop. The April futures contract for gold decreased by Rs 2,310, translating to a decline of 1.51%. It settled at Rs 1,50,736 per 10 grams, compared to Wednesday's closing price of Rs 1,53,046 per 10 grams.
Expert Analysis on Market Volatility
Renisha Chainani, Head of Research at Augmont, commented on the sudden shift, stating, "Gold and silver erased recent gains, snapping a two-day rebound as renewed selling pressure and heightened volatility returned to precious-metal markets." This observation underscores the fragile nature of the recovery and the rapid return of bearish forces.
International Market Weakness
The weakness observed in domestic markets was a direct reflection of trends in international trade. Overseas, both silver and gold futures extended their losses, contributing to the downward pressure on Indian prices.
On the Comex exchange, silver futures for March delivery dropped sharply by $8.85, which equates to a significant fall of 10.48%. The contract settled at $75.55 per ounce. During intraday trading, the metal experienced an even steeper decline, falling more than 13% to touch a low of $73.38 per ounce, indicating extreme volatility and selling intensity.
Current Gold Prices Across Major Indian Cities
Amidst the futures market turmoil, spot gold prices in various Indian cities provide a snapshot of retail rates. Here is a detailed look at the prices as of today:
- Ahmedabad: 22K gold at Rs 14,160; 24K gold at Rs 15,447.
- Bangalore: 22K gold priced at Rs 14,155; 24K gold at Rs 15,442.
- Bhubaneswar: 22K gold at Rs 14,155; 24K gold at Rs 15,442.
- Chennai: 22K gold costs Rs 14,320; 24K gold is priced at Rs 15,622.
- Delhi: 22K gold stands at Rs 14,170; 24K gold at Rs 15,457.
- Hyderabad: 22K gold available at Rs 14,155; 24K gold priced at Rs 15,442.
- Jaipur: 22K gold at Rs 14,170; 24K gold at Rs 15,457.
- Kanpur: 22K gold costs Rs 14,170; 24K gold priced at Rs 15,457.
- Kolkata: 22K gold stands at Rs 14,155; 24K gold at Rs 15,442.
- Mumbai: 22K gold is priced at Rs 14,155; 24K gold costs Rs 15,442.
This widespread data illustrates the regional variations in gold pricing, which are influenced by local factors such as demand, taxes, and transportation costs, even as futures markets dictate broader trends.
The sharp reversal in precious metals highlights the ongoing volatility in commodity markets, driven by global economic indicators and currency fluctuations. Investors and traders are advised to monitor these developments closely, as such swings can impact portfolios and investment strategies significantly.
