On Thursday, gold prices experienced a decline at the outset, with gold futures on MCX reported at Rs 1,34,550 per 10 grams, reflecting a decrease of 0.26%. Concurrently, silver futures fell by 0.45%, settling at Rs 2,06,492 per kg. The decline follows silver reaching an all-time high of Rs 2,07,833 on Wednesday, leading to some moderate profit-taking activities. Despite the correction, market attention continues to center on both metals, which are positioned close to their historical peaks, stimulating interest regarding their short-term outlook.
In light of the depreciation of the Indian rupee, both gold and silver concluded the day on a robust note within the domestic market on Wednesday. Favorable signals from the global bullion markets further bolstered the upward trajectory. On the MCX, Gold February futures settled at Rs 1,34,894 per 10 grams, reflecting an increase of 0.36%, whereas Silver March futures concluded at Rs 2,07,435 per kilogram, marking a significant rise of 4.89%.
The increase in precious metals was driven by heightened expectations for additional rate cuts from the U.S. Federal Reserve, prompted by disappointing ADP non-farm employment figures. Furthermore, geopolitical tensions between the U.S. and Venezuela, along with robust industrial and investment demand, provided additional support to prices. “Gold is hovering near its lifetime highs, while silver has set a new record, closing above $66 per troy ounce, signaling a fresh breakout,” stated Manoj Kumar Jain.
He noted that silver could continue its upward trajectory in the upcoming sessions, with prices expected to approach the range of $75–78 per troy ounce in the near term. Meanwhile, volatility in bullion markets is anticipated to continue as the Bank of Japan policy meeting approaches, influenced by wider fluctuations in global financial markets and the US Dollar Index, which was last observed around 98.42, reflecting a 0.02% increase. Jain anticipates that gold and silver prices will exhibit volatility this week, influenced by fluctuations in the dollar index, uncertainties in the global market, and the forthcoming U.S. CPI data.