Gold Price / Silver Drops Over Rs 44,000 from Peak, Gold Also Retreats; Is It Right Time to Buy?
·5 months ago·3 min read
Key Points
- Silver prices fell nearly 6% on MCX to ₹3.75 lakh/kg after hitting a record high, down over Rs 44,000 from its peak.
- Globally, spot silver eased but is still up about 62% in January, on track for its strongest monthly performance ever.
- Gold also retreated; analysts remain constructive amid geopolitical tensions and Fed policy outlook.
New Delhi, Jan 30: Silver prices fell sharply on Friday, January 30, slipping nearly 6 per cent as a firmer US dollar weighed on market sentiment, even as the white metal remained on track for its strongest monthly performance on record.
On the Multi Commodity Exchange (MCX), silver prices dropped around 6 per cent to Rs 3,75,900 per kg after touching a record high of Rs 4,20,048 per kg in the previous session. The metal has now declined over 10 per cent, or more than Rs 44,000, from its all-time peak.
In the international market, spot silver eased 0.2 per cent to $115.83 an ounce after scaling a fresh lifetime high of $121.64 on Thursday. Despite the pullback, silver has surged nearly 62 per cent so far this month, placing it firmly on course for its best monthly showing ever.
The pause in the rally came as the US dollar index edged higher, finding support after the US Federal Reserve kept interest rates unchanged earlier this week. Although the dollar remained on track for a second straight weekly decline, the temporary rebound pressured precious metals.
US Federal Reserve Chair Jerome Powell said inflation in December was still likely above the central bank’s 2 per cent target. Data showing a drop in weekly US jobless claims pointed to limited layoffs, even as subdued hiring kept labour market sentiment cautious. Geopolitical tensions also remained elevated amid reports that US President Donald Trump is weighing options against Iran.
Gold prices also retreated, with spot gold falling 0.9 per cent to $5,346.42 an ounce by 0124 GMT, after hitting a record high of $5,594.82 in the previous session. Gold has gained more than 24 per cent in January, marking its biggest monthly rise since 1980. US gold futures, however, were up 1.3 per cent at $5,390.80.
Despite Friday’s decline, analysts remain constructive on precious metals. Ross Maxwell, Global Strategy Operations Lead at VT Markets, said the broader backdrop continues to favour safe-haven assets amid rising cross-asset volatility and a Federal Reserve increasingly sensitive to downside risks.
Also Read: Why Does Sydney Sweeney Say She’s Being Used as a ‘Pawn’?
From a technical perspective, Renisha Chainani, Head of Research at Augmont, said gold could move towards $5,800–6,000 (Rs 1,87,000– Rs 1,95,000), with strong support near $5,200–5,020 (Rs 1,60,000). For silver, a decisive break above $118 (Rs 4,05,000) could open up targets of $125–130 (Rs 4,30,000– Rs 4,50,000), while key support lies near $110 (Rs 3,75,000).
On the Multi Commodity Exchange (MCX), silver prices dropped around 6 per cent to Rs 3,75,900 per kg after touching a record high of Rs 4,20,048 per kg in the previous session. The metal has now declined over 10 per cent, or more than Rs 44,000, from its all-time peak.
In the international market, spot silver eased 0.2 per cent to $115.83 an ounce after scaling a fresh lifetime high of $121.64 on Thursday. Despite the pullback, silver has surged nearly 62 per cent so far this month, placing it firmly on course for its best monthly showing ever.
The pause in the rally came as the US dollar index edged higher, finding support after the US Federal Reserve kept interest rates unchanged earlier this week. Although the dollar remained on track for a second straight weekly decline, the temporary rebound pressured precious metals.
US Federal Reserve Chair Jerome Powell said inflation in December was still likely above the central bank’s 2 per cent target. Data showing a drop in weekly US jobless claims pointed to limited layoffs, even as subdued hiring kept labour market sentiment cautious. Geopolitical tensions also remained elevated amid reports that US President Donald Trump is weighing options against Iran.
Gold prices also retreated, with spot gold falling 0.9 per cent to $5,346.42 an ounce by 0124 GMT, after hitting a record high of $5,594.82 in the previous session. Gold has gained more than 24 per cent in January, marking its biggest monthly rise since 1980. US gold futures, however, were up 1.3 per cent at $5,390.80.
Despite Friday’s decline, analysts remain constructive on precious metals. Ross Maxwell, Global Strategy Operations Lead at VT Markets, said the broader backdrop continues to favour safe-haven assets amid rising cross-asset volatility and a Federal Reserve increasingly sensitive to downside risks.
Also Read: Why Does Sydney Sweeney Say She’s Being Used as a ‘Pawn’?
From a technical perspective, Renisha Chainani, Head of Research at Augmont, said gold could move towards $5,800–6,000 (Rs 1,87,000– Rs 1,95,000), with strong support near $5,200–5,020 (Rs 1,60,000). For silver, a decisive break above $118 (Rs 4,05,000) could open up targets of $125–130 (Rs 4,30,000– Rs 4,50,000), while key support lies near $110 (Rs 3,75,000).
📱 Get Argus News App
✨📰 60 Word News🎬 Argus Podcast📺 Live TV and Breaking News🔔 Free Notification Alerts
Download Free:
Related Topics
Explore more stories