Editor’s Note
Today’s precious metals market saw notable declines in both gold and silver, driven by a stronger U.S. dollar and broader global pressures. This brief highlights the key factors behind the downturn.
Both gold and silver showed weakness today. The domestic and international bullion markets witnessed significant volatility. Pressure remained on precious metals amid weak global cues and a strengthening US Dollar Index. On the Multi Commodity Exchange (MCX), silver prices recorded a sharp decline, while gold was also seen trading in the red.
On Thursday, silver surprised investors in the domestic futures market on the MCX. The previous closing price for the March contract was Rs 2,68,850 per kg, while today silver crashed by nearly Rs 24,000 and was seen trading around Rs 2,44,600 per kg. Weak industrial demand, profit-booking, and negative signals from the global market put pressure on silver. According to experts, volatility in the market may increase after such a sharp fall.
Gold prices also showed weakness. On Thursday, in the domestic futures market, gold for the April contract on MCX was seen trading around the level of Rs 1,48,000 per 10 grams. A decline of approximately 0.83 percent was recorded. Pressure on gold was mainly due to a strong US Dollar, a rise in US bond yields, and softening demand for safe-haven investments. Limited jewelry demand in the domestic market also put a brake on gold’s rally.
Speaking of the international market, both gold and silver remained under pressure on COMEX as well. COMEX gold was seen trading around $4888.80 per ounce, recording a decline of about 1.25 percent. Meanwhile, COMEX silver showed even more weakness. Silver slipped to around the level of $76.885, recording a significant decline of approximately 8.90 percent. Uncertainty regarding interest rates globally and the Federal Reserve’s hawkish stance have dimmed the shine of precious metals.
