Gold, Silver Plunge From Records as Profit-Taking Mounts

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AuthorKavya Nair|Published at:
Gold, Silver Plunge From Records as Profit-Taking Mounts
Overview

Gold and silver prices experienced significant declines Thursday, surrendering recent record gains. Silver saw a steep drop of Rs 12,500 per kg, while gold eased by Rs 900 per 10 grams. Profit-taking amid weak global cues and a steady US dollar fueled the sell-off, with investors awaiting key US economic data for further direction.

Bullion Prices Tumble After Record Rally

Silver prices plummeted Rs 12,500 on Thursday, falling sharply from record highs as investors moved to book profits. The white metal settled at Rs 2,43,500 per kg after touching an all-time peak of Rs 2,56,000 per kg just a day prior. This sudden correction was primarily driven by heavy profit-taking following the recent aggressive ascent.

Gold Prices Follow Suit

Gold prices also retreated in the domestic market. Gold of 99.9% purity shed Rs 900 to reach Rs 1,40,500 per 10 grams, inclusive of taxes. The precious yellow metal had closed at Rs 1,41,400 per 10 grams in the preceding session.

Global Factors Weigh on Sentiment

Market experts attribute the decline to prevailing global factors. Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, noted reduced positions among traders due to diminishing safe-haven demand and a firming US dollar. In international markets, spot gold saw a nearly 0.7% dip to around $4,427 per ounce, while silver prices dropped over 3% to approximately $75.67 per ounce.

Data Dependency Dictates Future Moves

Investors are adopting a cautious stance ahead of crucial global economic events, including anticipated US Supreme Court rulings on tariffs and the release of US labor market data. Jateen Trivedi of LKP Securities highlighted that markets are keenly awaiting US non-farm payrolls data, which could significantly influence the future trajectory of gold and silver prices. Analysts suggest this corrective phase may persist as cautious sentiment and position unwinding continue to exert downward pressure.

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