Precious metals continued to slide sharply on Friday, extending their recent correction as heavy profit booking hit gold, silver and base metals simultaneously. The sell-off followed a record-setting rally earlier this month, with traders rushing to lock in gains amid a stronger dollar and easing safe-haven demand.
Silver witnessed the steepest fall among metals. MCX silver futures plunged more than 10%, slipping to around Rs 3.58 lakh per kg, while spot silver prices dropped close to 10% to near the $104 per ounce level. The sharp decline came after silver had surged to historic highs earlier in the week, triggering aggressive unwinding of long positions.
Gold prices also remained under pressure. MCX gold futures fell over 4%, while spot gold declined around 5.5% globally, hovering near $2,780 per ounce. The correction followed gold’s failure to sustain record levels, with selling pressure intensifying as the US dollar rebounded after recent weakness.
Base metals mirrored the negative sentiment. Copper prices dropped over 4%, zinc slipped nearly 3%, and aluminium fell more than 3%, reflecting broader risk-off moves across commodity markets. The decline in industrial metals was driven by a combination of profit booking and concerns over near-term demand.
Market participants noted that Indian commodity prices saw a sharper correction compared with global markets due to elevated domestic premiums. As international prices cooled, the compression of these premiums amplified losses on Indian exchanges, especially in silver, which remains highly volatile.
The ongoing correction highlights a shift from momentum-driven buying to cautious positioning, as traders reassess valuations after an exceptionally strong rally across precious metals.
