Silver prices crash ₹12,500 to ₹2.43 lakh/kg; gold slips, white metal futures down 6%

Meanwhile, the price of gold (24K, 99.9% purity) in the local bullion market decreased by ₹900 to ₹1,40,500 per 10 gram (inclusive of all taxes) compared to the previous close of ₹1,41,400 per 10 gram.

In the overseas markets, spot gold fell by $29.65, or 0.67%, to $4,426.91 per ounce, while silver traded 3.22% lower, or $2.51, to $75.67 per ounce.

Market participants will await Friday's non-farm payrolls report, which is likely to add volatility and provide direction to bullion prices, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. 

Gold, silver futures

Gold futures for the February delivery fell to an intraday low of ₹1,36,443 per 10 gram on the Multi-Commodity Exchange (MCX) on Thursday, declining by 1.13% when compared to the previous close of ₹1,38,009 per 10 gram on Wednesday.

Silver futures also fell on Thursday, falling by as much as 5.8% from ₹2,50,605 per kg to an intraday low of ₹2,36,044 per kg on the MCX. 

Why did silver prices crash?

Gold and silver are safe-haven assets, which means they rise during uncertain times. Both precious metals advance during geopolitical tensions, market volatility and weak currencies. In the past few sessions, because of tensions between the US and Venezuela, gold and silver were rising. 

However, due to easing tensions and a strong dollar, gold prices fell in both domestic and international markets. Silver prices move in tandem with gold, which is why even the white metal fell as safe-haven demand eased. Notably, investors remain cautious as the precious metals are still volatile.