New Delhi: Silver prices retreated sharply on Wednesday after hitting a record high of Rs 2,59,692 per kg in the futures trade, as traders booked profits after a steep rally amid caution ahead of key US
economic data. On the Multi Commodity Exchange (MCX), silver futures for March delivery ended the four-day rally, plunging Rs 4,161, or 1.61 per cent, to Rs 2,54,650 per kilogram. In the morning session, the metal rose Rs 881, or 0.34 per cent, to touch a new record of Rs 2,59,692 per kg.
The metal had skyrocketed by Rs 13,167, or 5.35 per cent, on Tuesday, to a new peak of Rs 2,59,322 per kg before settling at Rs 2,58,811 per kg. On Monday, it had closed at Rs 2,46,155 per kg. Meanwhile, gold futures showed limited movement. The yellow precious metal for February contract declined Rs 633, or 0.46 per cent, to Rs 1,38,450 per 10 grams, reflecting mild-profit booking after strong gains in recent sessions.
In the international market, Comex silver futures were trading lower by USD 1.41, or 1.74 per cent, to USD 79.63 per ounce, after rising as much as 1.91 per cent to hover near a record at USD 82.58 per ounce. The white metal had touched an lifetime high of USD USD 82.67 per ounce on December 29. Gold futures for February delivery slipped by USD 21, or 0.47 per cent, to USD 4,475.10 per ounce in the overseas trade, consolidating near its record levels.
"Gold fell to around USD 4,480 per ounce on Wednesday, pausing its two-day gains as investors looked past geopolitical risks and focused on upcoming US economic data," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said. Market participants are awaiting key economic releases include the December jobs report due on Friday, which could provide further clues on the Federal Reserve's (Fed) monetary policy outlook, he added.
Meanwhile, FOMC member Neel Kashkari noted that rising unemployment could increase the likelihood of rate reductions, with traders pricing in two cuts this year. On the geopolitical front, risks continued to underpin sentiment. Trivedi said tensions remain elevated after the US captured Venezuela President Nicolás Maduro, with US President Donald Trump warning of further action if the interim leadership resists Washington's oversight.
Trivedi added that tensions rose between China and Japan after Beijing imposed export controls on items with potential military use, bolstering safe-haven demand for bullion.
Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.
