The bullion market experienced a sharp reversal within 24 hours after silver and gold prices hit record highs. On Multi Commodity Exchange (MCX), silver futures for March delivery fell nearly 17 percent, dropping to ₹3,32,002 per kilogram. This marked a steep decline of about ₹88,046 per kilogram or roughly 21 percent from the previous day’s peak of ₹4,20,048 per kilogram.
Similarly, gold futures for April delivery saw a significant fall of around 9 percent, settling at ₹1,67,406 per 10 grams. This came after reaching an all-time high of ₹1,93,096 per 10 grams just a day earlier. The 24-hour drop in gold prices was about ₹25,690 per 10 grams or nearly 13 percent.
In the Delhi Sarafa market on Friday, gold prices slipped by ₹14,000 per 10 grams to ₹1,69,000, including taxes, reflecting a 7.65 percent decline. Silver prices also dropped by ₹20,000 per kilogram, or approximately five percent, to ₹3,84,500 per kilogram with all taxes included. These declines followed record peaks the previous day when gold hit ₹1,83,000 per 10 grams and silver reached ₹4,04,500 per kilogram.
Experts attribute this sudden fall to profit booking by investors after the recent rapid price surge. Senior analyst Jins Saumil Gandhi from HDFC Securities noted that institutional traders offloaded large long positions, contributing to the sharp corrections. The strengthening of the US dollar also put additional pressure on bullion prices. From a technical perspective, the market had experienced heavy buying over several sessions, increasing the likelihood of a correction.
Vijay Kuppa, CEO of InCred Money, stated that global profit booking following the price rally was a key factor behind the sharp drop. He added that the absence of clear support levels at the high prices led to a swift technical correction. Market uncertainty increased after the announcement of Kevin Warsh as the next head of the US Federal Reserve, prompting cautious trading amid concerns over potentially aggressive monetary policy.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.