New Delhi, Jan 30: Gold and silver futures declined sharply on Friday as traders booked profits after a strong rally that pushed prices to record highs, amid a bearish global trend and a rebound in the US dollar.
On the Multi Commodity Exchange (MCX), silver futures for March delivery fell Rs 12,169, or 3.04 per cent, to Rs 3,87,724 per kg, after touching an all-time high of Rs 4,20,048 per kg in the previous session. Gold futures for February delivery also slipped Rs 2,162, or 1.28 per cent, to Rs 1,67,241 per 10 grams, retreating from a lifetime peak of Rs 1,80,779 per 10 grams.
Market analysts attributed the decline to aggressive profit-taking triggered by a rebound in the US dollar. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said domestic prices corrected more sharply than global benchmarks, raising price parity concerns as the dollar index bounced back and the USD-INR pair hit a record high.
Globally, Comex gold futures dropped over 2 per cent in Asian trade, while silver futures slid nearly 4 per cent after hitting fresh records. Analysts, however, noted that despite the pullback, both metals are on track for their strongest monthly gains in decades, supported by economic uncertainty and shifting monetary policy expectations.
Traders are now awaiting key US economic data, including Producer Price Index figures, for further cues on the market direction.
