Sharp Decline in Precious Metal Prices
Amid continuously rising prices of gold and silver over the past few months, a major correction has now been witnessed in the commodity market. Silver prices have suddenly fallen by more than Rs 33,000 within five trading sessions on the Multi Commodity Exchange (MCX), while gold prices have also registered a notable decline.
Market experts say the fall comes after the government’s decision to increase import duties on precious metals, including gold and silver. The development has triggered volatility in futures trading across commodity markets.
Silver Prices Witness Massive Correction
Silver prices on MCX have been falling continuously for the last three trading days. As futures trading opened on Wednesday, silver became cheaper by more than Rs 2,500 per kilogram in a single session.
According to market data, silver futures expiring on July 3 had touched Rs 3,00,238 per kilogram on May 13. However, the price sharply dropped to nearly Rs 2,66,850 per kilogram during Wednesday’s trading session.
Although some recovery was seen around midday, with prices rising by over Rs 2,000 per kilogram, silver still remains significantly below its recent highs.
Silver Now Far Below Record High
Silver prices are now trading much lower than their lifetime high recorded earlier this year. In January, MCX silver prices had crossed Rs 4 lakh per kilogram for the first time.
Compared to that record level, silver has now become cheaper by nearly Rs 1.9 lakh per kilogram. Analysts believe the recent correction reflects profit-booking, policy changes, and fluctuations in global commodity sentiment.
Gold Prices Also Start Falling
Along with silver, gold prices on MCX have also started declining. Gold futures had closed at Rs 1,59,080 per 10 grams on Tuesday but fell to nearly Rs 1,57,959 after futures trading resumed on Wednesday.
Over the last five trading sessions, gold prices have reportedly declined by around Rs 4,227 per 10 grams. On May 13, gold futures expiring on June 5 were trading at approximately Rs 1,62,186.
Gold Still Below Lifetime High
Gold prices are also trading significantly below their all-time high. Earlier this year in January, 24-carat gold on MCX crossed the Rs 2 lakh mark per 10 grams for the first time and touched a record high of Rs 2,02,984.
Compared to that peak level, gold prices have now fallen by nearly Rs 45,000 per 10 grams in futures trading.
Domestic Market Shows Different Trend
Interestingly, while MCX futures prices have declined, domestic bullion prices have moved upward.
According to the Indian Bullion Jewellers Association website, 24-carat gold prices increased from Rs 1,57,739 per 10 grams on Tuesday to Rs 1,59,077 on Wednesday.
Similarly, silver prices in the domestic market rose from Rs 2,68,040 per kilogram to Rs 2,68,713 per kilogram. Market reports indicate that prices have remained largely stable at these levels today.
Investors Closely Watching Market Trends
Commodity traders and investors are now closely monitoring global economic developments, import duty policies, and international bullion market trends to assess the future direction of gold and silver prices.
Experts believe volatility may continue in the coming weeks as global demand, inflation concerns, and currency movements influence precious metal markets.