Gold and silver prices on MCX remained volatile on Sunday after witnessing a sharp correction last week, which market participants described as a phase of intense profit-booking following a prolonged record rally. Gold was trading near Rs 1,41,500 per 10 grams, down around 5.5%, while silver hovered close to Rs 2.69 lakh per kg, lower by nearly 8% in the latest session.
According to market experts, the recent fall does not indicate a breakdown in the broader trend. Pranav Koomar, Founder and CEO of PlusCash, said the decline was a classic case of profit-booking after extended gains rather than a shift in fundamentals. He noted that high speculative positioning, a strengthening US dollar, and a rise in bond yields contributed to the correction in gold prices.
The pressure on precious metals intensified after US President Donald Trump announced former Federal Reserve Governor Kevin Warsh as his pick for the next Fed Chair. Warsh is seen as hawkish on interest rates, which pushed the dollar higher and weighed on gold and silver prices globally.
From a medium- to long-term perspective, analysts highlighted that gold continues to find support from global uncertainty, sustained central bank buying, and tight supply dynamics. On MCX, both gold and silver showed signs of marginal recovery after the initial sharp fall, indicating some buying interest at lower levels.
Traders also cautioned that price movements could remain erratic, as the commodity segment is open on Sunday alongside equities for the special Union Budget trading session. With limited liquidity and heightened event-driven volatility, intraday prices may fluctuate sharply.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
