Silver and gold prices took a downturn from their record highs, primarily due to a strong US dollar and weak global economic indicators. This shift prompted investors to book profits, as evidenced by trading on the Multi Commodity Exchange (MCX).
On January 16, silver futures on MCX dropped by a significant Rs 4,027, settling at Rs 2,87,550 per kg, while gold prices fell to Rs 1,42,601 per 10 grams. These declines mirrored broader market trends, with weaker-than-expected US weekly jobless claims bolstering the US dollar and President Donald Trump's softer stance on Iran diminishing the safe-haven appeal of precious metals.
In the international market, the trend was similar. Silver for March delivery on the Comex saw a 2.10% decline, falling from a record high of USD 93.56 per ounce to USD 90.41 per ounce. Gold futures for February delivery also dropped by 0.47%, from USD 4,650.50 per ounce to USD 4,601.8 per ounce.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, attributed these movements to recent US macroeconomic data, which has kept expectations of Federal Reserve rate cuts on hold for the first half of the year. This has resulted in the dollar index reaching multi-week highs, creating near-term challenges for bullion prices.
