Gold and silver prices on the Multi Commodity Exchange (MCX) witnessed a sharp sell-off on Thursday, with silver plunging as much as 16% from recent highs, while gold prices corrected by nearly 8% across near-month contracts, triggering caution among investors.
At the close, MCX Silver March futures settled at ₹3,35,600 per kg, down ₹64,293 or 16.08%, after touching an intraday low of ₹3,32,002. Other silver contracts, including February, April and MIC expiries, also ended sharply lower, losing between ₹61,600 and ₹64,900, indicating broad-based liquidation in the metal.
Gold futures also ended deep in the red. The April gold contract closed at ₹1,70,011 per 10 grams, down ₹13,951 or 7.58%. Meanwhile, March gold futures declined ₹15,131 (8.40%) to ₹1,65,001, while February and April contracts shed between ₹13,500 and ₹15,000, tracking weakness in global bullion prices and profit-taking after recent highs.
Base metals also remained under pressure. MCX Copper February futures closed at ₹1,332.10 per kg, down ₹79.40 or 5.63%, reflecting subdued industrial demand cues.
What’s Driving the Fall?
Market participants attributed the sharp decline to profit-booking at record levels, easing safe-haven demand, and a stronger US dollar. Elevated volatility also forced leveraged positions to unwind, especially in silver, which tends to witness sharper corrections.
Buy or Sell?
Analysts advise near-term caution, noting that bullion prices may remain volatile. While long-term investors could consider staggered buying on deeper dips, traders are advised to wait for price stability and technical confirmation before initiating fresh positions.
