Gold, silver prices continue to crash! MCX Silver, MCX Gold drop - what investors should know

Gold, silver price today: Gold and silver prices continued their steep decline on Monday, dropping sharply on Multi Commodity Exchange (MCX) futures trade. This is the third consecutive day of decline in gold and silver prices.

Aggressive profit-booking has followed a sharp rally that had taken both metals to record levels in the previous month. With the latest fall, silver has now declined by Rs 1.66 lakh per kg, or 41.5 per cent, over just three trading sessions.




Volatility in the near term could intensify after CME Group announced an increase in margin requirements for Comex gold and silver futures starting Monday. Higher margins raise the cost of holding leveraged positions, often prompting speculative players to trim exposure, which can place additional downward pressure on global bullion prices.

As domestic gold and silver prices on the MCX closely mirror international benchmarks, sharp moves or weakness originating on Comex are typically reflected in Indian markets, particularly in the initial sessions. Although the margin hike does not directly change MCX rules, it can curb risk appetite, trigger wider intraday fluctuations and delay bargain buying until prices stabilize, with currency movements further shaping the rupee-denominated impact.

In overseas markets, spot gold slipped 3.3 per cent to $4,703.27 an ounce by 0259 GMT, after dropping more than 5 per cent earlier in the session to its weakest level in over two weeks. The yellow metal had touched an all-time high of $5,594.82 on Thursday. Spot silver, however, moved in the opposite direction, gaining 1.6 per cent to $85.98 an ounce, although it remains far below its lifetime peak of $121.64 reached the same day.

"Going ahead, gold is expected to remain volatile but relatively more stable compared to silver, which may continue to witness exaggerated swings. In the current phase, caution is advisable — a watch-and-learn approach is better until volatility subsides and price structures stabilize,” says Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Manoj Kumar Jain of Prithvi Finmart told ET that gold and silver are currently experiencing extreme price swings. He noted that silver may find a floor near $65 per troy ounce, while gold could hold above the $4,440 mark on a weekly closing basis. According to him, volatility in both metals is likely to persist in the near term, influenced by movements in the dollar index and ongoing geopolitical developments.

Jain said gold has immediate support in the $4,680 to $4,620 zone, with resistance placed between $4,800 and $4,910 per troy ounce. For silver, support is seen in the $67 to $74 range, while resistance lies between $84 and $88.80 per troy ounce during the current session.

In the domestic market, he highlighted that MCX gold has support between Rs 1,44,400 and Rs 1,37,700, with resistance in the Rs 1,48,800 to Rs 1,54,000 band. MCX silver is expected to find support between Rs 2,55,500 and Rs 2,44,000, while resistance is seen in the Rs 2,78,000 to Rs 2,92,000 range. He advised investors to hold off on fresh trades until bullion prices show clearer signs of stability.

(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)