Gold and silver prices showed recovery on Friday morning after experiencing significant declines on Thursday in both international and domestic markets. The Multi Commodity Exchange (MCX) witnessed a rebound as investors engaged in bottom-fishing following the previous day’s steep losses.
Recovery in MCX Trading
As of 10:30 AM on Friday, silver for March futures gained ₹6,196 to trade at ₹2,42,599 per kilogram on the MCX. Gold for April futures climbed ₹1,464 to reach ₹1,54,000 per kilogram. This upward movement came after a day of substantial losses that had pulled precious metal prices significantly lower.
The recovery in prices is being attributed to investor buying at lower levels following Thursday’s dramatic fall. Market participants appear to be viewing the decline as a buying opportunity, leading to renewed demand for both gold and silver.
Thursday’s Sharp Decline
On Thursday, both gold and silver witnessed major corrections across global markets. In the American market (COMEX/Spot), gold fell approximately 2.3-2.8 percent to around $4,980-$4,940 per ounce. Silver experienced an even steeper decline, dropping about 8.8 percent to settle in the $75-$76 range.
The domestic market mirrored this downward trend. On MCX, gold for April futures fell by ₹6,400 to ₹1.52 lakh per kilogram. Silver prices collapsed dramatically, with futures dropping approximately ₹26,000 late Thursday evening, bringing the price per kilogram down to ₹2.37 lakh.
Reasons Behind Thursday’s Fall
Market analysts attribute the sharp decline to several factors. Strong unemployment data from the United States and reduced expectations of interest rate cuts by the Federal Reserve played significant roles. These developments led to signals of a strengthening dollar, which typically puts downward pressure on precious metal prices.
When the US dollar strengthens, commodities priced in dollars, including gold and silver, become more expensive for holders of other currencies. This generally reduces demand and puts downward pressure on prices. Additionally, expectations of continued higher interest rates make non-yielding assets like gold and silver less attractive compared to interest-bearing investments.
Distance from Record Highs
The current prices represent a substantial correction from recent record levels. On January 29, 2026, gold reached an all-time high of ₹1.93 lakh per kilogram on MCX, while silver touched ₹4.20 lakh per kilogram.
From these peak levels, gold has declined by approximately ₹40,000, while silver has fallen by around ₹1.82 lakh. At Friday morning’s trading levels of ₹1.54 lakh for gold and ₹2.42 lakh for silver, both metals remain significantly below their recent highs.
Market Volatility
The precious metals market has demonstrated considerable volatility in recent weeks. The sharp movements in both directions highlight the sensitivity of these markets to macroeconomic data and central bank policy expectations.
Gold and silver are often viewed as safe-haven assets during times of economic uncertainty. However, they also compete with other investment options, particularly when interest rates are high or rising. The interplay between these factors creates periods of volatility as investors reassess their positions.
Global Market Context
The movements in Indian markets have largely reflected trends in international commodity exchanges. American markets saw similar patterns, with significant declines on Thursday followed by some stabilization. The COMEX gold and silver futures markets serve as global benchmarks, and price movements there typically influence trading in other markets around the world.
Investment Considerations
Financial advisors consistently recommend that investors consult with qualified advisors before making investment decisions in gold and silver. The volatile nature of precious metals markets makes timing crucial, and individual investment decisions should be based on personal financial goals, risk tolerance, and overall portfolio strategy.
While some investors view price declines as buying opportunities, others may see them as signals to reduce exposure. The appropriate response depends on individual circumstances and investment objectives.
Looking Ahead
Market participants will be watching several factors that could influence precious metal prices in the coming days and weeks. These include ongoing economic data releases from major economies, particularly the United States, statements and actions from central banks regarding monetary policy, and broader market sentiment regarding global economic conditions.
The recent volatility underscores the importance of diversification and careful position management for investors in commodity markets. While gold and silver have historically served as stores of value over long periods, short-term price movements can be substantial and unpredictable.
