Gold and Silver Prices Decline Amid Profit-Taking and Stronger US Dollar

Gold and silver prices experienced significant declines on Friday, January 30, 2026, influenced by profit-taking and a strengthening US dollar. On the Multi Commodity Exchange (MCX), silver futures for March delivery closed 12.7% lower at ₹291,925 per kilogram, down from ₹334,699 the previous week. Gold futures for April delivery fell 8.2% to ₹152,345 per 10 grams, compared to ₹166,076 a week earlier.

Earlier in the week, both metals reached record highs, with silver touching ₹409,800 per kilogram and gold reaching ₹180,779 per 10 grams on January 29. The surge was driven by rising geopolitical tensions and market fluctuations. However, the announcement of Kevin Warsh as the nominee for Federal Reserve Chair led to a stronger US dollar, prompting investors to book profits, resulting in the sharp declines observed on Friday.

In international markets, spot silver fell 31.4% to settle at $78.53 per ounce, marking its worst day since March 1980. Spot gold declined 11.4% to $4,745.10 per ounce. In Delhi, silver prices dropped by ₹20,000 per kilogram to ₹384,500, while gold prices decreased by ₹14,000 to ₹169,000 per 10 grams.

Analysts attribute the downturn to stretched technical conditions, institutional profit-taking, and the US dollar's recovery. Despite the corrections, gold and silver prices are expected to remain elevated due to central bank gold purchases, silver's supply-demand deficit, and ongoing geopolitical tensions.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 on February 1, with potential announcements that could impact bullion prices in the coming weeks.