Silver, Gold Futures Decline as Traders Book Profits After Record Highs

Silver and gold futures experienced a sharp decline on Friday, January 30, 2026, as traders booked profits following a record-breaking rally. The retreat comes amid a rebound in the U.S. dollar and a global shift toward cautious market sentiment.

Market Performance: Key Highlights

• Silver futures for March delivery dropped ₹12,169, or 3.04%, closing at ₹3,87,724 per kilogram, with a total turnover of 8,710 lots on the Multi Commodity Exchange (MCX).
• The metal had surged nearly 9% in the previous session, hitting a record ₹4,20,048 per kg before easing to ₹3,99,893 per kg.
• Gold futures for February delivery declined ₹2,162, or 1.28%, to ₹1,67,241 per 10 grams in 3,965 lots.
• Gold had climbed about 9% earlier in the week, reaching a new peak of ₹1,80,779 per 10 grams before settling at ₹1,69,403 per 10 grams.

The sudden pullback in precious metals underscores how quickly markets adjust after record highs, with investors locking in gains.

Company and Commodity Details

• The U.S. dollar index reversed from recent lows of 96, impacting the domestic pricing of precious metals.
• The USD/INR pair touched record highs, further influencing silver and gold futures in India.
• Central bank purchases moderated in the fourth quarter of 2025, while global investor inflows remained strong, balancing the slowdown.
• India’s gold imports are expected to slow down this year due to record-high prices affecting jewellery demand, the world’s second-largest consumer market.

Global Perspective

• On Comex, gold futures for April delivery fell $118.06, or 2.2%, closing at $5,236.74 per ounce in Asian trading. The metal had touched an all-time high of $5,626.8 per ounce on Thursday, January 29, before easing to $5,354.8 per ounce.
• Silver futures on Comex dropped $4.17, or nearly 4%, to $110.26 per ounce, retreating from the previous session’s record of $121.78 per ounce.

Despite the sharp correction, both metals remain on track for strong monthly gains. Silver, in particular, has posted over 50% growth in January 2026, marking one of its best monthly performances on record.

Summary of the Movement

The recent pullback in gold and silver illustrates the natural rhythm of commodity markets after historic surges:

• Rapid gains often trigger profit-taking among traders.
• Dollar strength continues to play a critical role in pricing adjustments.
• Record highs temporarily reduce physical demand, as seen in India’s jewellery sector.
• Global economic factors and geopolitical uncertainties continue to support precious metals’ longer-term appeal.

As the market absorbs this profit-driven correction, attention now shifts to upcoming U.S. economic data, particularly the Producer Price Index (PPI), which may offer new insights into the direction of metals prices.

Source: The Hindu