Gold, silver prices slide over 2% on MCX: What should investors do amid sharp volatility?

Gold and silver futures declined sharply in early trade on Thursday, extending losses after volatile moves in the previous session. Gold February 5 futures were trading at Rs 1,49,580 per 10 grams, down 2.15 per cent from the previous close. The contract had settled at Rs 1,52,862 in the previous session.

Gold futures opened lower at Rs 1,51,557 and remained under pressure throughout the session. The contract touched an intraday low of Rs 1,48,777, while the day’s high was recorded at Rs 1,53,784.

The metal traded below the previous session’s levels for most of the day, reflecting continued selling pressure amid volatile market conditions.

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Gold trades in a wide intraday range

Gold February futures saw a wide intraday movement during the session. The trading range between the day’s high and low stood at Rs 5,007. Despite the sharp intraday decline, gold futures were still trading closer to their 52-week high of Rs 1,58,475 than the 52-week low of Rs 98,169.

Market data showed that gold prices remained significantly above their yearly lows, even as the metal corrected sharply from recent highs. The broader price movement highlighted the elevated volatility seen in precious metals over recent sessions.

Silver futures see steeper losses

Silver March 5 futures also witnessed a sharp decline during the session and underperformed gold on a percentage basis.

The silver contract was trading at Rs 3,10,253 per kg, down 2.59 per cent from the previous close of Rs 3,18,492.

Silver futures opened higher at Rs 3,19,843 but reversed direction early in the session. The contract slipped to an intraday low of Rs 3,05,753, while the day’s high was recorded at Rs 3,25,602.

The sharper decline in silver reflected higher volatility compared with gold during the session.

Silver volatility remains elevated

Silver March futures traded in a wide intraday range of Rs 19,849, highlighting increased price swings in the metal.

On a 52-week basis, silver futures were trading closer to their yearly high of Rs 3,35,521 compared with the 52-week low of Rs 1,09,741.

Despite the sharp fall, silver prices continued to remain significantly above their annual lows, indicating sustained long-term price strength amid short-term volatility.

The intraday movement underscored the heightened sensitivity of silver prices to global cues.

Global cues and expert commentary

The decline in domestic prices came after a mixed settlement in international markets on Wednesday. Gold February futures in the international market settled at $4,836.00 per troy ounce, up 1.47 per cent, while silver March futures settled at $92.94 per troy ounce, down 1.79 per cent.

In the domestic market, gold February futures settled at Rs 1,52,862 per 10 grams with a gain of 1.53 per cent, while silver March futures settled at Rs 3,18,492 per kg with a loss of 1.60 per cent.

Commenting on the volatility, Manoj Kumar Jain said, “Gold and silver show very high price volatility and hit record highs in the early trading session, but fell off record highs after the US President Trump said in his speech at the World Economic Forum at Davos for not use force to acquire Greenland.”

He said prices witnessed heavy profit booking after the comments amid risk aversion in global financial markets. “We are experiencing very high price volatility in both precious metals,” Jain said.

Jain added that global uncertainty due to US trade tariffs and Western policies could continue to support safe-haven buying. He also said the rupee slipping to record low levels against the US dollar was supporting domestic prices.

On the near-term outlook, Jain said, “We suggest staying away from taking fresh positions in both precious metals in today’s session and wait for some stability in the markets.”

Ajay Kumar Kedia said silver could underperform in the near term. “GSR (Gold Silver Ratio) is expected to see a pullback till the $72.40 level, which means silver should underperform,” he said, while cautioning investors amid continued volatility.

Gold and silver prices continued to remain volatile, with investors closely tracking global developments and price movements during the session.