The sell-off in gold and silver accelerated further in Thursday’s trading session, as a strong US dollar is making dollar-priced commodities more expensive for holders of other currencies.
Gold February futures tumbled by ₹1,566 per 10 grams to reach the day’s low of ₹136,443, extending losses for the second consecutive session. Yet, prices still remain up 1.14% in early 2026, following a 76.5% surge in 2025.
In the international market, the spot gold price fell by 1% to $4407 per troy ounce.
Ponmudi R, CEO of Enrich Money, said, “The gold 20-day EMA at ₹1,35,509 continues to act as strong dynamic support, with buyers stepping in consistently on every dip. A sustained breakout above ₹1,38,000 could accelerate momentum toward ₹1,40,000– ₹1,42,000. The preferred accumulation band remains ₹1,36,000– ₹1,37,000, with the broader trend clearly favouring a buy-on-dips approach.”
Silver prices also retreated sharply from recent highs. After falling 3.17% on Wednesday, the silver March delivery futures contract on ₹12,805 per kilogram today”>MCX declined another ₹12,805 per kilogram today, reaching the day’s low of ₹237,800, taking the two-day cumulative drop to ₹21,011 per kilogram.
From the record peak of ₹259,322, silver prices are down ₹21,522. In the international market, spot silver prices fell as much as 4.5% to $74.47 per ounce. The white metal had hit a record high of $84 in late December.
Dollar gains amid mixed US economic data
Amid geopolitical tensions, mixed US economic data offered limited clarity on the Federal Reserve’s policy outlook. The US job openings fell more than expected in November, pointing to cooling labour demand, while private payroll growth in December rebounded by less than anticipated, according to media reports.
Meanwhile, ISM data showed an unexpected improvement in services‑sector activity last month.
The mixed economic indicators also triggered a rally in the US dollar, which rose for the third straight day on Thursday, reaching 98.7, making dollar‑priced precious metals more expensive for holders of other currencies.
Investors’ attention has now shifted toward weekly jobless claims, due on Thursday, and the December employment report on Friday, for additional clarity on labour market conditions.
On the geopolitical front, the US seized two Venezuela‑linked oil tankers in the Atlantic Ocean on Wednesday.
HSBC sees gold hitting $5,000 per ounce in the first half of 2026 on geopolitical risks and rising fiscal debts and expects silver to trade between $58 and $88 in 2026, driven by supply deficits, robust investment demand, and high gold prices, but warned of a potential market correction later in the year, Reuters reported.
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