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What is the story about?
Gold held steady on Friday (February 6), while silver extended losses for the second consecutive day as investors booked profits amid a firm US dollar and easing geopolitical tensions.
On the Multi Commodity Exchange (MCX), gold futures for April delivery rose by ₹976, or 0.64%, to trade at ₹1.53 lakh per 10 grams, recovering from an earlier dip. Silver futures for March delivery, however, dropped by ₹8,198 per kg to ₹2.39 lakh per kg, after slumping as much as ₹14,628 per kg, or 6%, to hit an intraday low of ₹2.29 lakh per kg.
The sell-off in silver comes after a sharp rally over the past year.
"Silver has come off mainly because it had run up too fast in a short period," said Akshat Garg, Head of Research & Product at Choice Wealth. "Overly optimistic positioning meant that even small shifts in global cues, like a slightly stronger dollar or cooling risk appetite, prompted investors to cut exposure to volatile assets."
Market dynamics and investor behavior
Experts note that silver, by nature, reacts more sharply than gold due to its smaller and thinner market. ETFs tracking silver prices feel the impact immediately, often amplifying short-term price swings.
Renisha Chainani, Head of Research at Augmont, said, "Silver ended a short-lived two-day rebound as the recovery failed to sustain. Rising volatility across precious metals led to broad deleveraging, with silver underperforming as hopes of dip-buying faded quickly."
Globally, silver futures on Comex for March delivery fell by $4.78, or 6.23%, to $71.93 per ounce, while gold slipped slightly by $18.34, or 0.38%, to $4,871.16 per ounce.
Easing geopolitical tensions, such as confirmed talks between Iranian and US officials in Oman, reduced safe-haven demand, analysts said.
What investors should know
Experts stress that short-term volatility does not change the long-term relevance of precious metals. Garg advises investors to focus on disciplined strategies: staggered buying, proper position sizing, and avoiding reactive trading.
Silver, in particular, works best as a supporting allocation in a diversified portfolio rather than a core holding.
Chainani said that in the near term, silver is expected to trade between $70–90 per ounce (₹2.25–2.85 lakh per kg). "A breakdown below $70 per ounce could trigger further downside towards $64 per ounce (around ₹2 lakh per kg)," she added.
For gold, long-term fundamentals—including geopolitical tensions, central bank demand, and currency pressures—remain supportive, while investors are advised to remain patient and avoid overreacting to short-term swings.
On the Multi Commodity Exchange (MCX), gold futures for April delivery rose by ₹976, or 0.64%, to trade at ₹1.53 lakh per 10 grams, recovering from an earlier dip. Silver futures for March delivery, however, dropped by ₹8,198 per kg to ₹2.39 lakh per kg, after slumping as much as ₹14,628 per kg, or 6%, to hit an intraday low of ₹2.29 lakh per kg.
The sell-off in silver comes after a sharp rally over the past year.
"Silver has come off mainly because it had run up too fast in a short period," said Akshat Garg, Head of Research & Product at Choice Wealth. "Overly optimistic positioning meant that even small shifts in global cues, like a slightly stronger dollar or cooling risk appetite, prompted investors to cut exposure to volatile assets."
Market dynamics and investor behavior
Experts note that silver, by nature, reacts more sharply than gold due to its smaller and thinner market. ETFs tracking silver prices feel the impact immediately, often amplifying short-term price swings.
Renisha Chainani, Head of Research at Augmont, said, "Silver ended a short-lived two-day rebound as the recovery failed to sustain. Rising volatility across precious metals led to broad deleveraging, with silver underperforming as hopes of dip-buying faded quickly."
Globally, silver futures on Comex for March delivery fell by $4.78, or 6.23%, to $71.93 per ounce, while gold slipped slightly by $18.34, or 0.38%, to $4,871.16 per ounce.
Easing geopolitical tensions, such as confirmed talks between Iranian and US officials in Oman, reduced safe-haven demand, analysts said.
What investors should know
Experts stress that short-term volatility does not change the long-term relevance of precious metals. Garg advises investors to focus on disciplined strategies: staggered buying, proper position sizing, and avoiding reactive trading.
Silver, in particular, works best as a supporting allocation in a diversified portfolio rather than a core holding.
Chainani said that in the near term, silver is expected to trade between $70–90 per ounce (₹2.25–2.85 lakh per kg). "A breakdown below $70 per ounce could trigger further downside towards $64 per ounce (around ₹2 lakh per kg)," she added.
For gold, long-term fundamentals—including geopolitical tensions, central bank demand, and currency pressures—remain supportive, while investors are advised to remain patient and avoid overreacting to short-term swings.
