Hyderabad: Gold silver prices, which had climbed to record highs, saw a sharp correction this week as a stronger US dollar and heavy profit booking triggered widespread selling.
In the previous trading session, MCX gold futures fell 9 per cent. At the same time, silver futures recorded a steep decline of 25 per cent. The fall followed a sudden shift in global investor sentiment.
On the Multi Commodity Exchange (MCX), gold futures were trading at ₹1,49,075. Meanwhile, silver futures were quoted at ₹2,91,922 per kg. Data from the India Bullion and Jewellers Association (IBJA) showed that 24-carat gold prices for 10 grams slipped to ₹1,65,795. The metal had closed earlier at ₹1,75,340.
Gold silver fall after dollar strengthens
The correction came after the US dollar strengthened sharply in global markets. This followed the nomination of Kevin Warsh as the next chair of the Federal Reserve by President Donald Trump.
Market participants expected Warsh to take a firm stance on inflation. They also believed he would support higher interest rates. As a result, the dollar gained strength. Selling pressure then intensified across gold silver markets.
Despite the sharp fall, analysts described the move as a healthy correction. They said the decline reflected profit booking after a strong rally. According to them, it did not signal long-term weakness.
Analysts pointed out that central banks across several countries continued to buy gold. This steady demand, they said, would support prices over time. They also highlighted strong industrial demand for silver from green energy, electric vehicles, artificial intelligence, and electronics sectors.
They added that if silver prices slipped to the ₹3 lakh–₹3.10 lakh range, buying interest could return. Such accumulation, they said, could push prices back toward ₹3.40 lakh–₹3.50 lakh levels.