gold and silver prices – The precious metals market witnessed a notable decline on Thursday as gold and silver prices opened on a bearish note on the Multi Commodity Exchange of India (MCX). The downturn was largely driven by a strengthening US Dollar, which gained momentum following better-than-expected employment data from the United States. Investors across global markets reacted cautiously, trimming their expectations for near-term interest rate cuts by the US Federal Reserve, which in turn dampened sentiment for commodities priced in the greenback.
On the MCX, gold futures for the April contract expiry opened with a loss of 0.47%, beginning the trading session at ₹1,58,000 per 10 grams. This marked a significant drop compared to the previous session’s closing price of ₹1,58,755 per 10 grams. During intraday trading, the yellow metal touched a low of ₹1,57,701, reflecting continued selling pressure as domestic and global cues aligned in a negative direction.
As trading progressed, MCX gold prices were hovering around ₹1,58,079 per 10 grams, reflecting a decline of ₹676 or approximately 0.43% from the previous close. While the drop was moderate, it signaled a shift in market mood following a strong recovery session witnessed just the previous day. Traders and analysts were keeping a close watch on how the market would absorb the latest macroeconomic signals coming in from the United States.
Silver also came under significant pressure during Thursday’s trading session. The March contract expiry for silver on the MCX opened at ₹2,61,361 per kilogram, a sharp fall of ₹1,657 or 0.63% compared to its previous closing price of ₹2,63,018. The white metal extended its losses during the session and dipped to an intraday low of ₹2,60,453, marking nearly a 1% decline at one point in the trading day.
By the time markets were in active trade, MCX silver prices were down by ₹1,950, or 0.74%, trading at ₹2,61,068 per kilogram. The metal, which had rallied by as much as 4% in the previous session, was now giving back a significant chunk of those gains as global risk sentiment shifted and investors reassessed their positions in the commodities space. The reversal highlighted just how sensitive precious metals can be to macroeconomic data and currency movements.
The primary reason behind this broad decline in gold and silver prices was the renewed strength of the US Dollar Index. Strong employment figures released in January surpassed market forecasts and indicated that the American labor market remains robust. This data effectively reduced the probability of the US Federal Reserve cutting short-term interest rates in the near term, which triggered a rally in the dollar and put pressure on dollar-denominated assets like gold and silver. When the dollar strengthens, commodities priced in it become more expensive for holders of other currencies, thereby reducing demand.
On the international front, spot gold prices fell by 0.4% to reach $5,058.64 per ounce, pulling back from the gains recorded in the previous session where the metal had risen by over 1%. US gold futures for April delivery were also down 0.3%, trading at $5,080.0 per ounce. Despite the dip, gold managed to hold its ground above the psychologically significant $5,000 per ounce level, which many market participants view as a critical support zone for the metal in the current environment.
Silver’s international performance mirrored the domestic picture. Spot silver prices fell by 1.4% to $82.87 per ounce on Thursday, reversing a sharp 4% gain from the previous session. The quick reversal illustrated how volatility has become a defining feature of the silver market in recent times, with prices swinging dramatically based on currency movements, inflation expectations, and broader investor sentiment. Despite the setback, silver retained its appeal among investors looking for alternative stores of value.
It is worth noting that gold has managed to recover approximately half of the sharp 13% decline it had recorded over just two trading sessions earlier this month. The metal’s resilience can be attributed to continued buying by central banks around the world, which have been consistently adding gold to their reserves as part of their diversification strategies. Additionally, ongoing geopolitical tensions across various parts of the globe have supported safe-haven demand for the metal, providing a floor beneath prices even during periods of short-term weakness.
Silver and other precious metals have also been benefiting from what traders call the “debasement trade,” where investors move their assets out of conventional currencies to hedge against the risks associated with rising sovereign debt levels and possible currency devaluation. This structural demand has helped precious metals maintain relatively elevated price levels even when facing headwinds from a stronger dollar or reduced expectations of monetary easing. The trend reflects a broader global anxiety about the sustainability of fiscal policies in major economies.
Looking ahead, gold on MCX’s April futures contract is expected to remain range-bound with a negative bias, with analysts projecting intraday trading to oscillate between ₹1,57,000 and ₹1,60,000 per 10 grams. Silver on the March futures contract is seen potentially sliding down to ₹2,57,000 per kilogram if weak global sentiment persists. The immediate focus of investors will be the upcoming US inflation data scheduled for release on Friday, which is expected to provide fresh direction to monetary policy expectations and, consequently, to precious metal prices.
As far as domestic retail gold prices are concerned, on February 12, 22-carat gold was being sold at ₹1,46,460 per 10 grams in Delhi, while 24-carat gold was priced at ₹1,59,760. In major cities like Mumbai, Pune, Bangalore, Hyderabad, and Chennai, 22-carat gold was available at ₹1,46,310, while 24-carat gold was priced at ₹1,59,610 per 10 grams. Slight variations in prices across cities are common due to local taxes, dealer margins, and logistical differences in distribution.
Silver prices at the retail level showed a similar geographic variation. In Chennai, Hyderabad, and Kochi, silver was priced at ₹3,00,000 per kilogram, while cities like Mumbai, Delhi, Kolkata, Pune, Bangalore, and Ahmedabad saw silver trading at ₹2,95,000 per kilogram. These differences, while not dramatic, underscore the regional dynamics that play a role in determining final consumer prices for precious metals across India’s diverse marketplace.
