MCX silver falls 2% to ₹2.56 lakh/kg; gold also declines amid profit booking, strong US dollar

At around 2:27 pm, the white metal contract was trading 1.25% or ₹2,295 lower at ₹2,59,325 per kilogram on the MCX. On Monday, it had surged ₹12,728, or 5.09%, to close at ₹2,62,620 per kilogram.

In the global market, COMEX silver (March expiry) slumped as much as 2.41% to the session’s low of $80.25 per troy ounce. It stood at $81.275 per ounce, down by 1.17% at the time of writing. On Monday, the metal had finished at $82.23 per ounce.

Similarly, gold futures for expiry in April dropped by ₹2,065 or 1.31% to an intraday low of ₹1,56,001 per 10 grams on the MCX.

At the time of writing, the yellow metal contract was at ₹1,57,475 per 10 grams, down by ₹591 or 0.37%. In the previous session, the yellow metal climbed ₹2,615, or nearly 1.7%, to settle at ₹1,58,066 per 10 grams.

Globally, COMEX gold (April delivery) fell as much as 1.35% to an intraday low of $5,011 per ounce. It was trading at $5,073.60 per ounce, marking a 0.11% decline at the time of writing. It had closed at $5,079.4 per ounce in the previous market session.

A strong US dollar weighed on investor sentiment, amid profit booking. The dollar index, which measures the greenback's strength against a basket of six currencies, inched up by 0.09% to 96.90, putting pressure on bullion prices globally.

On Monday, the dollar had weakened following reports that Chinese regulators advised domestic institutions to reduce exposure to US Treasuries, raising concerns over foreign demand for dollar assets.