Argus News - Gold Price Drop by ₹9,050, Silver Price Drops Too

Bhubaneswar, Feb 2: Gold and silver prices witnessed another sharp decline, continuing their downward trend for the third consecutive day. After touching record highs recently, both precious metals have seen rapid corrections, largely attributed to profit-booking by investors.

In Bhubaneswar, the price of 24-carat gold fell by ₹9,050 per 10 grams, bringing the rate to approximately ₹1,51,530. Similarly, 22-carat gold dropped by ₹8,300 per 10 grams, now priced at around ₹1,38,900.

Silver too faced a steep fall, losing ₹20,000 per kilogram to settle at ₹3,00,000.

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On the Multi Commodity Exchange (MCX), silver futures for March delivery hit the lower circuit, dropping by 9% or ₹26,273 to close at ₹2,65,652 per kilogram. Just two days earlier, silver had already fallen by 27% to ₹2,91,925, marking a cumulative decline of 33.6% in 48 hours. Weekly data shows silver has slipped nearly 21% from ₹3,34,699 per kilogram on January 23.

Gold prices also faced heavy selling pressure, losing ₹44,992 in just two days. On Sunday, gold fell 3% to ₹1.47 lakh per 10 grams. Experts attribute this sharp correction to aggressive profit-booking, as investors who bought at higher levels exited to secure gains.

Commodity analysts note that the fall in prices comes despite no major announcements in the Union Budget regarding gold or silver. JM Financial Services Vice President for Commodity and Currency Research, Pranav Mer, explained that excessive rallies often lead to steep corrections. He highlighted that gold has dropped nearly 20% from its lifetime high, while silver has plunged about 37% from its peak.

Mer added that further technical corrections may be seen in upcoming trading sessions, after which prices could stabilize. For buyers and investors, the current volatility presents both risks and opportunities, with real-time updates crucial for making informed decisions.