Global Pressure Weighs on Silver; Gold Finds Support from Central Bank Buying

Silver prices declined by nearly 2% to Rs 2.5 lakh/kg in the national capital's bullion market on Monday. Silver prices also surged by Rs 700 for every 10 grams, reaching Rs 1,59,200. Silver prices declined by Rs 5,000, or 1.96%, to Rs 2,50,000/kg on Monday, as stated by the All India Sarafa Association. This decline in silver prices is from Rs 2,55,000/kg on Friday. On the other hand, the price of 99.9 percent pure gold surged from Rs 1,58,500 to Rs 1,59,200 for every 10 grams.

Gaurav Garg, research analyst at Lemon Markets Desk, said that silver weakened as investors took profits after the weekend's rally. However, safe-haven demand amid central bank buying, a decline in technology and AI stocks, and a weak dollar index helped limit losses.

In global markets, silver was down by nearly 1% to $76.94 an ounce, while gold was down by $40.10 to $5,003.01 an ounce. SaumilGandhi, senior commodity analyst at HDFC Securities, said, “A slight strengthening of the dollar, which resulted in a lack of buying, was the reason for the fall in gold.”

He said that trading activity remained slow due to the closure of Chinese markets for the Lunar New Year holidays. The absence of Chinese investors weakened market sentiment, leading to fluctuations in silver. Thus, silver declined, and gold saw a slight rise on Monday, but global and domestic conditions kept prices under control overall.