Significant Swings in Precious Metal Market
The past week witnessed notable fluctuations in gold and silver prices across domestic and futures markets. On the final trading day, Friday, silver futures on the Multi Commodity Exchange of India closed higher by ₹2,808 per kilogram, while gold registered a marginal gain. However, despite the late recovery, both precious metals ended the week on a weaker note overall.
Silver Records Steep Weekly Decline
Silver prices have shown high volatility in recent days, with sharp rises followed by steep corrections. Over the last five trading sessions, silver futures dropped by ₹12,821 per kilogram. On April 17, silver was trading at ₹2,57,142 per kg on MCX, but by Friday, it settled at ₹2,44,321 per kg.
Compared to its historical peak, the decline is even more striking. Earlier this year in January, silver prices had surged past ₹4 lakh per kg, reaching an all-time high of ₹4,39,337. From that level, silver has now fallen by nearly ₹1.95 lakh per kg.
In the domestic market, data from the Indian Bullion Jewellers Association shows that silver prices declined by ₹6,115 per kg during the week, closing at ₹2,43,825 compared to ₹2,49,940 on April 17.
Gold Prices Also Under Pressure
Gold followed a similar trend, declining over the week despite minor gains on the final trading day. Gold futures on MCX for the June 5 contract closed at ₹1,52,799 per 10 grams on Friday, slightly up by ₹100. However, this is down from ₹1,54,609 recorded on April 17, marking a weekly drop of ₹1,810 per 10 grams.
Gold too has retreated significantly from its peak levels. Earlier this year, it crossed ₹2 lakh per 10 grams for the first time, reaching a lifetime high of ₹2,02,984. At current levels, gold is cheaper by around ₹50,185 per 10 grams from its peak.
Domestic Market Mirrors Decline
In the physical market, gold prices also edged lower during the week. According to IBJA, 24-carat gold was priced at ₹1,51,655 per 10 grams earlier, and closed slightly lower at ₹1,51,475 by the end of the week.
Outlook Remains Uncertain
Market experts attribute the volatility to global economic cues, currency fluctuations, and changing investor sentiment. With ongoing uncertainties, gold and silver prices are expected to remain volatile in the near term.