Gold and silver crash after record highs as profits are booked
Gold and silver crash after record highs as profits are booked
Gold and silver plunge as investors lock in gains amid a stronger dollar, following a rally to record highs.
Gold prices tumbled by ₹14,000 per 10 grams and silver prices sank by ₹20,000 per kilogram in the national capital on Friday as investors booked heavy profits after a surge to record highs. Gold, 99.9% purity, fell to ₹1,69,000 per 10 grams (inclusive of all taxes) after climbing to an all-time high of ₹1,83,000 per 10 grams on Thursday. Silver retreated to ₹3,84,500 per kilogram, retreating from a record of ₹4,04,500 per kg in the previous session.
Market watchers linked the pullback to heavy liquidation of long positions by large institutional players who sought to secure gains after a strong multi-session advance, as the US dollar also strengthened. Analysts noted that both metals had traded in overbought territory in recent sessions, increasing the risk of a corrective move. The combination of stretched technicals, profit-taking, and a firmer dollar likely to sustain pressure on bullion in the short term weighed on prices.
In futures markets, silver for March delivery on MCX dropped ₹12,169, or about 3.04%, to ₹3,87,724 per kilogram in brisk turnover. In the international arena, spot gold was down more than 5% as buyers stayed on the sidelines amid mixed global cues and a stronger dollar. Prices in major Indian metros also mirrored the softer trend, with Delhi closely tracking the national move.
With volatility likely to persist, traders are weighing potential buying opportunities on dips against the risk of further downside. Investors are advised to monitor the dollar trajectory and global risk sentiment for clues on the next leg of bullion prices.
