Gold, silver futures fall from record highs: Why are precious metals falling?

Gold and silver were trading lower on Thursday, January 15, tracking losses in the global market amid easing geopolitical tensions.

Silver futures for March delivery fell by 3.6% to an intraday low of ₹2,77,376 per kg during the evening session on Thursday, down from Wednesday’s closing price of ₹2,88,011 per kg. Meanwhile, gold futures for February delivery hit an intraday low of ₹1,41,960 per 10 gram, down 0.8% from ₹1,43,151 per 10 gram. 

The MCX was closed for the morning trading session, 9 AM to 5 PM, on account of municipal corporation elections in Maharashtra. The evening session is open for trading between 5 PM and 11:55 PM.

At around 8:10 pm, silver futures were trading 1.2% down at ₹2,84,500 per kg, while gold futures were 0.3% down at ₹1,42,700 per 10 gram. 

Why did gold and silver fall today?

Gold and silver are safe-haven assets; they rise during uncertain situations, including rising geopolitical tensions, market volatility, weak currencies and inflation concerns. In recent weeks, gold and silver have been soaring to new lifetime highs in nearly every session due to heightened geopolitical concerns. 

With US actions on Venezuela, President Trump considering military options against Iran, US Federal Reserve probe, Trump tariff concerns and persistent Russia-Ukraine tensions, geopolitical unrest has kept bullion elevated during the last fifteen days.

However, on Thursday, an easing in concerns led to a slight fall in gold and silver prices in both domestic and international markets. The US President Donald Trump adopted a softer tone on the Federal Reserve chair Jerome Powell, saying he has no plans to fire Fed Chair Jerome Powell. He also said that he may not intervene in Iran. These factors eased the safe-haven demand for the precious metals. 

Further, after gold and silver hit record highs in domestic and overseas markets on Wednesday, investors are booking profits. Gold futures hit a lifetime high of ₹1,43,590 per 10 gram, while silver contracts touched a record ₹2,91,406 per kg on the MCX on January 14. 

In international markets, gold hit a record high of $4,650 per ounce, while the white metal surpassed the $93 per ounce mark on Wednesday. With profit booking and easing geopolitical tensions, the precious metals fell on Thursday.