Daijiworld Media Network - Mumbai
Mumbai, Jan 30: Gold and silver prices witnessed a sharp correction on Friday as investors rushed to book profits a day after both precious metals scaled record highs, amid a rebound in the US dollar and weak global cues.
On the Multi Commodity Exchange (MCX), silver futures plunged 3.04 per cent, while gold futures fell 1.28 per cent. The decline followed Thursday’s historic surge, when silver touched an all-time high of Rs 4,20,048 per kg and gold climbed to Rs 1,80,779 per 10 grams.
International markets also reflected the selloff, with Comex gold slipping 2.2 per cent to USD 5,236.74 per ounce. Market experts attributed the fall to aggressive profit-taking triggered by a recovery in the dollar index from recent lows.
“After hitting record highs, gold and silver prices dropped as a rebound in the US dollar triggered aggressive profit-taking,” Manav Modi of Motilal Oswal Financial Services Ltd was quoted as saying.
The World Gold Council has cautioned that India’s gold imports may decline going forward, citing record-high prices and an expected drop in jewellery demand. It also noted that while central bank purchases slowed in the last quarter of 2025, strong investor interest continued to support prices.
Despite the correction, gold is still headed for its best monthly performance since the 1980s, while silver is on track for a monthly gain of over 50 per cent, its strongest ever. Analysts said the rally has been fuelled by a weak US dollar, shifting monetary policy expectations and geopolitical uncertainty.
Gold and silver exchange-traded funds (ETFs) also saw heavy selling, with several silver ETFs falling by up to 14 per cent, while gold ETFs declined by as much as 10 per cent, tracking the sharp fall in global prices.
Market volatility intensified after US President Donald Trump indicated that he would soon announce a replacement for Federal Reserve Chair Jerome Powell, raising concerns about a potentially more hawkish monetary stance.
Analysts said traders are now closely watching upcoming US Producer Price Index data for further cues on interest rate direction, even as safe-haven demand is expected to lend some support to precious metals in the near term.
Meanwhile, an industry commentary on social media described gold’s recent volatility as reaching “2008-crisis levels,” noting unprecedented swings in its market capitalisation within a single trading session, underscoring the heightened uncertainty gripping global financial markets.