Patna: After posting gains earlier in the week, gold and silver prices retreated on February 5, with sharp corrections seen across futures and bullion markets as investors moved to lock in profits.
On the Multi Commodity Exchange (MCX), silver prices recorded one of the steepest declines, falling by nearly Rs 28,000, or about 11%. The price of one kilogram of silver slipped to around Rs 2.40 lakh in futures trading. Gold prices also weakened, declining by about Rs 3,000, or nearly 2%, with 10 grams trading close to Rs 1.50 lakh.
According to data from the India Bullion and Jewellers Association (IBJA), the correction was equally visible in the physical market. Silver fell by Rs 30,230 to Rs 2,52,232 per kg, while 24-carat gold dropped by Rs 3,613 to Rs 1,53,012 per 10 grams. Official bullion market prices are released around noon each trading day.
Market participants attributed the fall largely to profit-taking after a volatile spell. Between January 29 and February 2, silver prices had already declined by Rs 1.60 lakh, while gold had corrected by Rs 26,000, underscoring the heightened swings in precious metal prices over the past fortnight.
Analysts note that MCX prices tend to fluctuate rapidly as gold and silver are traded continuously, much like equities, with bids and offers changing every second. In contrast, bullion market prices reflect the cost of physical metal, including transportation and storage, and often move with a slight lag.
With global cues, currency movements and investor sentiment continuing to influence commodities, traders are bracing for further volatility in gold and silver prices in the days ahead.
