Gold and silver prices tumbled on Friday as investors around the world took profits after a historic rally that sent precious metals to record highs, a retreat accelerated by a rebound in the US dollar and shifting expectations around American monetary policy.
In India, one of the world’s largest bullion markets, silver futures for March delivery fell sharply, dropping about 3 percent to roughly $4,650 per kilogram on the Multi Commodity Exchange. The decline followed a dramatic surge a day earlier, when prices climbed nearly 9 percent to an all-time high of about $5,040 per kilogram before easing by the close of trade, writes for Faustine Ngila for Impact Newswire.
Gold futures mirrored the move. Contracts for February delivery slipped about 1.3 percent to approximately $2,010 per ounce equivalent, after surging to a record near $2,170 per ounce in the previous session before paring gains.
The pullback reflected a broader recalibration after weeks of relentless buying that pushed precious metals to levels rarely seen outside periods of severe financial stress.
“After hitting record highs, gold and silver prices dropped as a rebound in the US dollar triggered aggressive profit-taking,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
The US dollar strengthened after touching recent lows, reversing some of the momentum that had fueled the rally in metals. A stronger dollar typically weighs on commodities priced in U.S. currency, making them more expensive for overseas buyers and encouraging investors to rotate into cash.
Modi said prices in India fell more sharply than global benchmarks, raising concerns about parity between domestic and international markets. The dollar index rebounded from recent lows near 96, while the Indian rupee weakened to a record low against the dollar, amplifying volatility for local traders.
The rapid ascent in prices has already begun to dampen physical demand. According to the World Gold Council, central bank purchases moderated in the fourth quarter of 2025, even as strong inflows from institutional investors helped support the market. The council also warned that India’s gold imports are likely to decline this year as record prices squeeze jewellery demand in the world’s second-largest consumer of the metal.
Globally, gold prices also retreated. Comex futures for April delivery fell about 2.2 percent to roughly $5,240 per ounce during Asian trading, after touching a lifetime high above $5,620 a day earlier before settling lower. The extraordinary levels reflect a confluence of factors, including geopolitical tensions, concerns over fiscal deficits and expectations that global interest rates may eventually move lower.
