Gold and silver snapped a two-day streak of an uptrend in prices and resumed their downward journey on Thursday. Silver fell more than gold, with momentum being similar to the one that lifted the white precious metal to a new high of $122 an ounce last week.
The precious metals complex came under selling pressure despite bargain hunting seen earlier this week, as investors were swayed by the rise in the dollar and a hawkish signal from the US Fed over interest rates. In India, the falling rupee dragged the complex.
The movement in all precious metals, including platinum and palladium was volatile with gold almost erasing its losses during mid-day before resuming its fall.
Gold and silver zig-zagged by over $200 and $16 an ounce, respectively as the market swung wildly through the day.
Easing trade tensions
ICICI Direct said in its Commodity Evening update that gold showed signs of dipping amid a strong dollar and easing signs of US-China trade tensions. “Further, Iran and the US have agreed to hold talks in Oman on Friday reducing safe haven demand. Meanwhile, Investors will keep an eye on today’s monetary policy meeting of BOE and ECB for further cues,” it said.
Renisha Chainani, head of research at Augmont, said gold and silver erased recent gains on renewed selling pressure and heightened volatility returned to precious-metal markets.
“China’s gold ETFs (exchange-traded funds) witnessed record daily outflows, with nearly $1 billion withdrawn from major bullion-backed funds after the sharp price correction unsettled investor confidence,” she said.
Ponmudi R, CEO of Enrich Money, said precious metals’ prices are trading below key moving averages, indicating short-term downward pressure and a corrective phase rather than a reversal of the broader trend.
Over 15% fall
At 1945 hours IST, gold was down 2.9 per cent at $4,818 an ounce, after swaying between $4,800 and $4,900 an ounce in early trade. On COMEX, Gold April futures ruled at $4,841.04, trading between $4,809.56 and $5,045 an ounce.
In the Mumbai spot market, gold ended at ₹1,52,502 per 10 gm on Thursday against ₹1,56,625 the previous evening. On MCX, gold April futures were down over 1.5 per cent ₹1,50,550 against ₹1,53,046 on Wednesday evening.
Silver slumped by over 15 per cent and below $75 to $74.14 an ounce. On COMEX, silver March futures were quoting at $73.80 an ounce, swinging between $73.38 and $89.80. In the Mumbai spot market, silver ended the day at ₹2,54,339 a kg against ₹2,82,462 at close on Wednesday. On MCX, silver March futures were quoted at ₹2,51,800 against ₹2,68,850.
On the Shanghai Futures market, silver March futures ruled at 22,407 yuan per kg ($100.39 an ounce).
‘Uptrend intact’
Platinum declined by over 7 per cent to $2,007.40 an ounce, while palladium dipped by over 3.5 per cent to $1,677 an ounce.
Ponmudi said the broader uptrend in gold and silver remains intact, with the pullback reflecting profit booking and healthy price digestion.
ICICI Direct said MCX gold April is expected to move in a wide range between ₹147,500 and ₹158,500, with a negative bias. “Only below ₹147,500 it would turn weaker,” it said.
The Bank’s market arm said spot silver is expected to remain volatile and dip towards $72 as long as it trades below $85 per ounce. Only a move above $70, it would slide further towards the $65 mark. MCX silver March futures are expected to remain volatile and dip towards ₹240,500 and as long as it holds below ₹265,000.
Gold and silver witnessed a splendid rally to record highs until last week on geopolitical crises, a dispute between US President Donald Trump and US Fed Chief, and investors switching to precious metals after the dollar fell to a four-year low.
However, the mood has swung on the reverse after Trump appointed Kevin Warsh as the next Fed chief. The market hopes for better relations between the US President and Warsh, even as the dollar has recovered. Signs of the new Fed chief being hawkish over interest rates, have further encouraged investors to switch back to currencies and bonds.
Published on February 5, 2026
