Silver prices fall by nearly 5%, gold rates drop over 2% on profit booking, easing global tensions

Gold and silver prices declined sharply on Friday, with the yellow metal falling by over 2% and the white metal declining by nearly 5% due to profit booking and easing global tensions.

Silver prices declined by 5% to ₹2,55,000 per kg in Delhi after closing at ₹2,68,000 per kg on Thursday, according to the All India Sarafa Association. 

Meanwhile, gold prices fell by 2% to ₹1,57,200 per 10 gram in the national capital against Thursday’s closing price of ₹1,60,600 per 10 gram.

According to a PTI report, traders said the fall in domestic prices was mainly driven by profit-taking at high levels, even as global precious metal rates staged a rebound later in the day.

In the overseas markets, bullion prices recovered on Friday, rising by more than 4% after an early plunge. Spot silver advanced $3.02, or 4.26%, to $74 per ounce, rebounding from an intraday low of $64.08 per ounce.

Spot gold increased by $106.74, or 2.23%, to $4,887.30 per ounce after touching a low of $4,654.86 per ounce earlier in the session.

“Spot gold opened on a weak note and hit a low of $4,654 per ounce but recovered sharply and is trading with a gain of around 2% at $4,880 per ounce,” the PTI report quoted Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, as saying. He added that weak jobs data supported precious metals, but hopes of a breakthrough in US-Iran talks capped the upside.

"Huge volatility continues in the precious metals complex in the wake of the ongoing Iran-US meeting in Oman and the path of US monetary policy going forward," Singh said.