Silver prices witnessed a sharp correction in the national capital on Thursday, plunging Rs 12,500 to Rs 2,43,500 per kilogram, retreating sharply from record levels hit in the previous session. Gold prices also declined, falling Rs 900 to Rs 1,40,500 per 10 grams (99.9% purity, inclusive of taxes), according to data from the All India Sarafa Association.
The steep fall came a day after silver had surged Rs 5,000 to touch an all-time high of Rs 2,56,000 per kg, highlighting aggressive profit-booking pressure in bullion markets. Gold had closed at Rs 1,41,400 per 10 grams in the previous session.
Global profit booking weighs on bullion
According to market participants, bullion prices declined amid long liquidation as traders trimmed positions following recent record highs. Senior analysts pointed to easing safe-haven demand and a stable US dollar as key factors behind the sell-off.
In international markets, spot gold fell by USD 29.65, or 0.67%, to USD 4,426.91 per ounce, while spot silver declined sharply by 3.22%, or USD 2.51, to USD 75.67 per ounce.
Index rebalancing adds selling pressure
Gold and silver prices also faced pressure from annual commodity index rebalancing, which is expected to trigger futures selling worth billions of dollars over the next few days. Passive funds tracking major commodity indexes are selling precious metals futures to align with revised weightings after last year’s sharp rally in bullion.
Silver remained particularly vulnerable, with estimates suggesting around USD 6.8 billion worth of silver futures could be sold during the rebalancing process, equivalent to roughly 12% of open interest on the Comex. Gold futures outflows are estimated to be of a similar magnitude.
Cautious positioning ahead of key events
Investors also adopted a cautious stance ahead of anticipated US Supreme Court rulings on Trump-era tariffs and the release of December labour market data, including the non-farm payrolls report. Analysts said these events added to near-term uncertainty and volatility in bullion prices.
Overall, the sharp decline reflects position unwinding after recent highs, global profit-booking, and technical selling linked to index rebalancing, with both gold and silver extending losses for a second consecutive session.
