NEW DELHI, Jan 30: Silver and gold futures declined sharply on Friday as traders booked profits at elevated levels following a record-breaking rally, amid bearish global cues and a rebound in the U.S. dollar.
On the Multi Commodity Exchange (MCX), silver futures for March delivery fell ₹12,169, or 3.04 per cent, to ₹3,87,724 per kilogram, with a business turnover of 8,710 lots. The white metal had surged nearly 9 per cent to a record high of ₹4,20,048 per kg on Thursday before settling at ₹3,99,893 per kg.
Similarly, gold futures for the February contract slipped ₹2,162, or 1.28 per cent, to ₹1,67,241 per 10 grams in 3,965 lots. In the previous session, gold had jumped almost 9 per cent to hit a lifetime high of ₹1,80,779 per 10 grams before easing to ₹1,69,403 per 10 grams on the MCX.
“After hitting record highs, gold and silver prices corrected as a rebound in the U.S. dollar triggered aggressive profit booking,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd (MOFSL).
He noted that domestic prices declined more sharply than international benchmarks in the previous session, raising parity concerns. The dollar index rebounded from recent lows of 96, while the USD/INR pair touched a record high.
According to Modi, the sharp rally had already pushed some physical buyers out of the market. The World Gold Council (WGC) said central bank purchases moderated in the fourth quarter of 2025, though strong investor inflows offset the slowdown.
The WGC also cautioned that India’s gold imports are likely to decline this year as record prices weigh on jewellery demand in the world’s second-largest consumer market.
In global markets, Comex gold futures for April delivery fell $118.06, or 2.2 per cent, to $5,236.74 per ounce during Asian trade. The metal had touched an all-time high of $5,626.8 per ounce on Thursday before closing at $5,354.8.
“Despite the pullback, gold remains on track for its strongest monthly performance since the 1980s amid persistent economic and geopolitical uncertainty,” Modi added.
Comex silver futures also declined $4.17, or nearly 4 per cent, to $110.26 per ounce after hitting a record high of $121.78 in the previous session.
“Silver retreated toward $110 per ounce as investors locked in profits following the record rally, while the rebound in the dollar added pressure,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He added that silver is still set for a monthly gain of over 50 per cent in January, marking its best performance on record, supported by a weak U.S. dollar and changing U.S. monetary policy expectations.
Modi said market participants will now closely watch the U.S. Producer Price Index (PPI) data for fresh cues on the monetary policy outlook. (Agencies)
