06 February,2026 01:16 PM IST | Mumbai | mid-day online correspondent
Representational image
After a global downfall in the stock market for the last two days, the commodity market on Friday also experienced a downward trend. Gold prices fell moderately, while silver lost over 3 per cent due to a stronger dollar and a rout in global technology stocks.
As reported by news agency IANS, MCX gold February futures fell 0.97 per cent to Rs 1,50,590 per 10 grams around 10.40 am on an intraday basis. Meanwhile, MCX silver March futures plunged 3.71 per cent to Rs 2,34,775 per kg.
The price of 24-carat gold in Mumbai, which was trading at over Rs. 1.6 lakh earlier last month, has fallen down significantly to Rs 1,54,690 for 10 grams on Friday. The sudden fall in price of gold has interested the buyers to invest in the yellow metal. On the other hand, the price of 22-carat gold in Mumbai on Friday was recorded at Rs 1,41,820 for 10 grams.
As reported by news agency IANS, silver prices on MCX had declined as much as 6 per cent to their day's low of Rs 2,29,187 per kg earlier during the session before a strong rebound.
On the other hand, commodities denominated in dollars became more expensive for holders of other currencies as the US dollar got poised for its strongest weekly performance since November, hovering close to a two-week high.
The sudden dip in the prices of silver has also reignited concerns over stretched valuations and heightened volatility, even as analysts maintained that the white metal's longer-term fundamentals remain constructive.
Investment banker JP Morgan, while commenting on the price drop, warned that silver's rich valuations could trigger disproportionate downside during bouts of market stress, adding that downside may be cushioned in the near term, with prices stabilising for a recovery next year.
Furthermore, the analysts called the sharp drop in precious metals a "technical correction" due to longer-term drivers such as geopolitical uncertainty, central-bank buying, and macro uncertainty remaining intact.
Moreover, the broader uptrend in COMEX gold remains intact, with the recent decline reflecting profit booking and healthy price digestion rather than trend reversal, they said.
Also, the market watchers advised investors to do staggered allocations rather than lump-sum investments to reduce entry risk.
(With inputs from IANS)
