Gold and Silver Prices Retreat as Stronger Dollar Triggers Profit-Taking
MUMBAI, India — Gold prices edged lower while silver recorded steep losses on Friday as investors booked profits amid a strengthening U.S. dollar and weakness in global equity markets.
On the Multi Commodity Exchange, gold futures for February delivery slipped 0.97 percent to Rs 1,50,590 per 10 grams in intraday trade. Silver futures for March plunged 3.71 percent to Rs 2,34,775 per kilogram.
Silver was particularly volatile during the session, falling as much as 6 percent to an intraday low of Rs 2,29,187 per kilogram before paring some of the losses.
Analysts attributed the pressure on precious metals to gains in the U.S. dollar, which is on track for its strongest weekly performance since November and hovering near a two-week high. A firmer dollar makes dollar-denominated commodities more expensive for buyers using other currencies, often weighing on demand.
The sharp correction in silver has renewed concerns over elevated valuations and increased volatility. However, market experts said the longer-term outlook for the metal remains constructive despite near-term weakness.
JP Morgan cautioned that silver’s relatively rich valuations could lead to outsized downside moves during periods of market stress, though it noted that prices may find support in the near term and stabilize ahead of a potential recovery next year.
Analysts described the pullback in gold and silver as a technical correction rather than a shift in the broader trend. They said longer-term drivers, including geopolitical uncertainty, sustained central bank buying, and broader macroeconomic risks, remain supportive for precious metals.
They added that the broader uptrend in COMEX gold remains intact, with the recent decline reflecting profit-taking and a period of consolidation rather than a trend reversal.
Market participants advised investors to adopt a staggered investment approach instead of making lump-sum allocations to manage entry risk more effectively.
For MCX gold futures, analysts see strong support in the Rs 1,37,000 to Rs 1,42,000 range, while resistance is expected between Rs 1,65,000 and Rs 1,75,000.
In the case of COMEX silver, analysts said a sustained move above the $85 to $92 range could trigger further upside toward $95 to $105, supported by steady industrial demand and structural supply constraints over the medium to long term. (Source: IANS)
