Gold and Silver Slump After Record Run for a Month 

Gold and silver prices in India fell strongly on Friday (January 30), retreating from record highs as profit-taking began as a stronger US dollar weighed on bullion markets, resulting in heavy losses across MCX and spot rates.

Gold futures for April delivery on the Multi Commodity Exchange (MCX) began 1.88% down at Rs 1.80 lakh per 10 grams, compared to a previous close of Rs 1.83 lakh. Prices fell below Rs 1.78 lakh per 10 grams, after reaching a lifetime high of Rs 1.93 lakh in the previous session.

Silver prices fell even more dramatically. MCX silver futures began about 4% lower at Rs 3.83 lakh per kg, compared to a previous close of Rs 3.99 lakh per kg. Losses eventually increased to around 5%. On Thursday (January 29), the metal reached a record high of Rs 4.20 lakh per kilogram.

Prices in the actual market mirrored the futures’ drop. In Mumbai, 24-carat gold fell to roughly Rs 1.78 lakh per 10 grams, while 22-carat gold fell to Rs 1.63 lakh per 10 grams. Spot silver prices dropped to about Rs 3.80 lakh per kilogram. These rates do not include GST or making charges.

According to Rahul Kalantri, Vice President – Commodities at Mehta Equities, gold and silver rose to lifetime highs earlier this week due to strong safe-haven demand amid heightened global uncertainty, but the rally was met with resistance at higher levels. He claimed traders took gains around record highs, causing a steep pullback even as bullion prices remained on course for their best monthly performance since the 1980s.

Kalantri said that volatility in precious metals remained high, with prices reacting to US dollar movements, global risk sentiment, and US policy signals.

Globally, gold and silver prices fell on Friday, weighed down by dollar strength. However, prices were still on track for their largest monthly gains in decades, supported by strong investor demand despite ongoing geopolitical and economic uncertainties.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairman of Aspect Global Ventures, stated that, notwithstanding near-term adjustments, the overall picture for bullion remains positive. She stated that investor uneasiness, global volatility, and policy uncertainty continue to support demand for precious metals, while periodic corrections are expected following rapid rises.

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