Silver, gold futures slide up to 10% as strong dollar, Fed uncertainty trigger selloff
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Silver and gold prices tumbled sharply on Thursday, snapping a two-day rebound as a stronger US dollar and renewed concerns over the US Federal Reserve’s policy outlook triggered heavy selling across global bullion markets. Both metals also tracked weakness in international prices, amplifying losses in domestic futures trade.
On the Multi Commodity Exchange (MCX), silver futures for March delivery plunged by ₹26,850, or 10%, to ₹2,42,000 per kilogram. The sharp fall came after the white metal had settled at ₹2,68,850 per kg in the previous session. Market participants attributed the steep decline to profit booking at elevated levels, coupled with a firm dollar that made dollar-denominated commodities less attractive for investors.
Gold futures
Gold futures also traded lower. The April gold contract on the MCX slipped by ₹2,310, or 1.51%, to ₹1,50,736 per 10 grams, compared with Wednesday’s close of ₹1,53,046 per 10 grams. The decline marked a reversal from recent gains, as traders reassessed expectations around interest rates and safe-haven demand.
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The weakness was mirrored in overseas markets. On the Comex, silver futures for March delivery fell sharply by $8.85, or 10.48%, to $75.55 per ounce. During intraday trade, silver plunged over 13% to hit a low of $73.38 per ounce, reflecting intense selling pressure. Gold futures for April delivery on Comex declined by $80, or 1.61%, to $4,870.9 per ounce. In the previous session, gold had crossed the psychologically significant $5,000-mark, touching a near two-week high of $5,113.9 per ounce before settling at $4,950.8 per ounce.
Why traders remain cautious
Adding to market caution were geopolitical developments and macroeconomic signals. Traders remained wary ahead of scheduled Iran-US talks on Friday while diplomatic engagements involving the US, China, and Russia also kept investors on edge. Meanwhile, expectations that the US Federal Reserve may keep interest rates higher for longer supported the dollar, weighing further on precious metals.
Gold prices also declined sharply in international spot markets, falling nearly 3% on Thursday, just days after the yellow metal witnessed a major crash toward the end of January.
Gold prices across cities
In the domestic retail market, gold prices across major metro cities stood at ₹1,59,560 in Bengaluru, ₹1,62,680 in Chennai, ₹1,59,730 in Delhi, ₹1,59,570 in Kolkata, ₹1,59,590 in Mumbai, and ₹1,59,610 in Pune, reflecting continued volatility in bullion prices.