Silver crashes 17% to below Rs 3.5 lakh mark, gold slips Rs 11,000/10 gm. Buying opportunity or trap?

Gold and silver futures closed sharply lower on the Multi Commodity Exchange (MCX) on Friday, with both metals ending in deep red as investors locked in profits after a strong rally earlier this week that had pushed prices to fresh record highs.

MCX Gold futures due February 5, 2026, were down Rs 11,000 or 6.5% to Rs 1,59,984 per 10 grams. Meanwhile, silver futures for March 5, 2026, delivery tanked by Rs 68,000 or 16.6% to Rs 3,34,503 per kg.

In the international market, Gold prices eased on Friday as a firmer dollar weighed on the metal, though prices remained on track for their strongest monthly gain since 1980 as investors continued to seek safety amid lingering geopolitical and economic uncertainties. Spot gold fell 0.9% to $5,346.42 per ounce as of 0124 GMT, after touching a record high of $5,594.82 in the previous session. Despite the pullback, gold has surged more than 24% so far in January, marking a sixth consecutive month of gains and its biggest monthly rise since January 1980.


Silver also edged lower, with spot prices slipping 0.2% to $115.83 per ounce after scaling a record $121.64 on Thursday. The metal has rallied 62% this month, putting it on course for its best-ever monthly performance. Meanwhile, the dollar index moved slightly higher, supported partly by the Federal Reserve’s decision earlier this week to keep interest rates unchanged, although it remains headed for a second straight weekly decline.

Gold, Silver Rates Today Live Updates: Gold hovers near Rs 1.8 lakh mark after sharp surge, silver tops Rs 4 lakh per kg; key triggers behind the rally

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said geopolitical tensions and strong safe-haven buying continue to support precious metal prices, with heightened US-Iran tensions likely to provide further momentum to gold and silver.

He noted that both metals are witnessing sharp volatility, but silver is expected to hold support at $98 per troy ounce, while gold could maintain support at $4,980 per troy ounce on a closing basis this week. Jain added that prices are likely to remain volatile in today’s session due to fluctuations in the dollar index, the upcoming Indian Union Budget, and ongoing geopolitical concerns. For the day, gold has support in the $5,220–5,110 range and resistance at $5,480–5,555 per troy ounce, while silver has support between $110.00–106.60 and resistance at $118.00–123.00 per troy ounce.

On the MCX, Jain sees gold finding support in the Rs 1,65,500–1,61,100 range, with resistance placed at Rs 1,74,400–1,80,000. Silver is expected to have support between Rs 3,88,000–3,74,000 and resistance at Rs 4,10,000–4,22,000. He recommends buying gold on dips between Rs 1,68,000–1,64,000, with a stop loss below Rs 1,61,100 and upside targets of Rs 1,72,800–1,75,000.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,31,488/8 grams while pure gold (24 carat) prices stand at Rs 1,43,208/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,31,168/8 grams while pure gold (24 carat) prices stand at Rs 1,43,088/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,34,408/8 grams while pure gold (24 carat) prices stand at Rs 1,46,632/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,31,168/8 grams while pure gold (24 carat) prices stand at Rs 1,43,088/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)