Gold and Silver Prices: After hitting record highs for two consecutive months, gold and silver prices are now experiencing a sharp decline. This week is proving to be a shock for investors, as both precious metals recorded a sharp decline in early trading on Friday. This decline, which began after record highs, has now persisted, intensifying market turmoil.
Significant Fall from Record Levels
Gold on the Multi-Commodity Exchange (MCX) has slipped by nearly ₹9,000 from its record high of ₹1.32 lakh per 10 grams. Silver, meanwhile, has fallen by nearly ₹24,000 from its peak of ₹1.70 lakh per kg. In early trading on Friday, gold fell by ₹1,244 to ₹1,22,860 per 10 grams, while silver fell by ₹2,565 to ₹1,45,947 per kg. In today’s trading, gold touched a high of ₹1,23,776 and a low of ₹1,22,800, while silver slipped after reaching ₹1,47,473.
Why are prices falling?
This decline comes at a time when risk perception is improving in global markets. The strengthening of the US dollar and investors booking profits from safe havens have somewhat dimmed the luster of gold and silver. Recent optimism about a US-China trade deal and expectations of interest rate cuts have shifted investors’ attention to other asset classes.
According to Darshan Desai, CEO of Aspect Bullion & Refinery, this decline could break gold’s nine-week continuous rally. He explained that elevated valuations and profit-taking are the main reasons for this decline.
What will the trend be ahead?
Rahul Kalantri, a commodity expert at Mehta Equities Limited, says the market is attempting a slight recovery after the biggest single-day drop in six years. Based on technical levels, he suggests support for gold at ₹1,23,670-₹1,22,980 and resistance at ₹1,24,950-₹1,25,800. For silver, support is at ₹1,46,850-₹1,45,150, and resistance is around ₹1,49,850.
Currently, market volatility persists, and investors are advised not to make any hasty decisions. Global cues and the dollar index’s trend will determine gold and silver prices in the coming days.