Gold and silver prices in India fell sharply on Thursday, reflecting weak trends in global bullion markets and profit-booking by traders after recent highs. Silver prices plunged by Rs 7,400, closing at Rs 2.70 lakh per kilogram in the national capital, while gold declined by Rs 1,300, settling at Rs 1.62 lakh per 10 grams. The drop in silver represents nearly a 3% decline compared to the previous session, whereas gold fell by around 1%, according to the All India Sarafa Association.
Traders pointed out that international cues were largely responsible for the fall. Spot silver overseas decreased by $1.91, or 2.15%, closing at $87.28 per ounce. Gold in the global market showed a marginal increase, trading at $5,176.21 per ounce, but a firm US dollar and profit-taking limited buying interest among investors in India.
The sharp fall follows a recent rally in bullion prices, which had pushed silver and gold to three-week highs earlier in the week. Traders noted that after hitting these peaks, some investors opted to book profits, contributing to the local price correction.
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Market analysts observed that the depreciation of silver was more pronounced than that of gold, reflecting its higher volatility and sensitivity to global industrial demand. Meanwhile, gold continued to remain attractive as a safe-haven asset amid international economic uncertainties, although domestic prices were temporarily affected by profit-booking.
Retail buyers and jewellers in major cities like Mumbai, Delhi, and Chennai reported lower buying interest as the sudden dip encouraged them to wait for more stable prices. Despite the decline, both metals remain significantly higher than year-ago levels, indicating strong underlying demand in India.
The bullion market remains closely linked to global trends, including the strength of the US dollar, changes in international interest rates, and investor sentiment in futures and commodity markets. Experts suggest that any sharp fluctuation overseas will continue to influence domestic prices in the near term.
With silver now trading near Rs 2.70 lakh per kg and gold at Rs 1.62 lakh per 10 grams, traders expect short-term volatility to persist. Investors are advised to monitor global cues closely, especially movements in the dollar index and international bullion spot prices, before making significant purchases or sales.
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