Gold Slips, Silver Tumbles On MCX As Dollar Strength Triggers Profit Booking

Gold prices softened, while silver fell sharply on Friday as investors locked in gains amid a stronger US dollar and weakness across global equity markets, particularly in technology stocks.

On the Multi Commodity Exchange (MCX), gold February futures slipped 0.97 per cent to trade at Rs 1,50,590 per 10 grams around 10:40 AM during intraday dealings. At the same time, silver March futures tumbled 3.71 per cent to Rs 2,34,775 per kg.

Silver experienced sharp price fluctuations throughout the session.

Earlier, MCX silver prices had plunged nearly 6 per cent, touching a day’s low of Rs 2,29,187 per kg, before recovering part of the losses.

Analysts linked the volatility to overstretched valuations and heightened risk aversion in global markets.

The pullback in precious metals coincided with a rise in the US dollar, which hovered close to a two-week high and headed towards its strongest weekly performance since November.

A firmer dollar typically reduces the appeal of dollar-denominated commodities for overseas investors, exerting pressure on prices.

Market experts characterised the recent decline in gold and silver as a technical adjustment rather than a breakdown of the prevailing uptrend. They noted that enduring factors such as geopolitical tensions, continued central bank buying, and broader macroeconomic uncertainty continue to support precious metals.

JP Morgan flagged that silver’s elevated valuations could amplify downside risks during periods of financial stress. However, the investment bank also indicated that prices may find stability in the near term, paving the way for a recovery next year.

Gold, Silver Outlook and Key Levels

According to analysts, the longer-term bullish structure in COMEX gold remains intact, with the latest dip reflecting routine profit booking after strong gains.

MCX gold futures are expected to find support between Rs 1,37,000 and Rs 1,42,000, while resistance is likely in the Rs 1,65,000–Rs 1,75,000 zone.

For COMEX silver, a sustained breakout above the $85–$92 range could accelerate gains towards $95–$105, backed by consistent industrial demand and ongoing supply constraints.

Market participants advised investors to adopt a staggered investment approach rather than deploying capital in a single tranche, in order to navigate volatility more effectively.