Editor’s Note
Following a historic rally, gold and silver prices have experienced a sharp correction. This article details the significant single-day declines on India’s Multi Commodity Exchange, attributed to profit-booking, and what this means for buyers.
After a record-breaking rally, gold and silver prices have crashed sharply today. On the Multi Commodity Exchange (MCX), gold broke down by 5%, falling to around 1.60 lakh rupees, while silver became cheaper by approximately 24,000 rupees in a single day. The market has plunged headlong today due to profit-booking at high levels, providing some relief to buyers.
In early trading on the MCX, both metals registered a decline of more than 5%. On the morning of January 30, the price of gold on MCX broke by 5.55%, falling to 1,60,001 rupees per 10 grams. This decline is significant because gold had recently hit its all-time high of 1,93,096 rupees. Today, gold has become cheaper by about 9,402 rupees.
Meanwhile, silver prices fell by 4.18%, tumbling to 3,83,177 rupees per kilogram. It is noteworthy that just on Thursday, silver had set a new record of 4,20,048 rupees per kilogram, but today’s profit-booking pulled prices down.
Softness was observed not only in the futures market but also in the retail market today. This could be an opportunity for ordinary buyers. According to data from a bullion website, on January 30, gold in the retail market fell by 5,300 rupees to trade at 1,65,180 rupees per 10 grams. Meanwhile, silver saw a major drop of 23,360 rupees and was seen at the level of 3,79,130 rupees per kilogram.
Movements in the international market have also put pressure on the Indian market. In the global market, spot gold fell by 1.65% to $5,217 per ounce, down from a record level of $5,594.82 the previous day. Similarly, spot silver also slipped by 2.86% to $110 per ounce.