Mumbai, Feb 6: Precious metals saw a decline on Friday, with gold prices dipping moderately and silver witnessing a sharper drop, as investors booked profits and the U.S. dollar strengthened.
On the Multi Commodity Exchange (MCX), February gold futures fell by 0.97%, trading at ₹1,50,590 per 10 grams around mid-morning. Silver prices dropped more significantly, losing over 3%, reflecting broader volatility in global markets.
Analysts attribute the decline to a combination of factors. A stronger U.S. dollar tends to make dollar-denominated commodities like gold and silver more expensive for international buyers, reducing demand. Additionally, a sell-off in global technology stocks contributed to risk-off sentiment, prompting investors to liquidate positions in precious metals.
Market experts note that such corrections are common following extended periods of gains, as traders take profits and reassess positions amid global economic developments.
While the current dip may offer short-term trading opportunities, gold and silver continue to be viewed as safe-haven assets during times of uncertainty, and long-term trends will depend on currency fluctuations, inflation expectations, and global market dynamics.