Gold, silver prices slip after three-day rally as investors book profits
Market analysts say silver often outperforms gold in bullish markets, typically rising 1.5 to 2 times faster, a trend now evident
PTC Web Desk: After registering strong gains for three consecutive sessions, gold and silver prices witnessed a sudden decline on the Multi Commodity Exchange (MCX), mainly due to profit booking by investors. The correction led to a drop ranging from nearly Rs 1,000 in gold to around Rs 10,000 in silver, even as prices in the physical bullion market remained largely stable.
On Thursday, January 15, gold prices on MCX fell by nearly Rs 1,000 per 10 gram, while silver prices declined by close to Rs 10,000 per kg. Market experts attributed the fall to investors locking in profits after the recent rally, coupled with subdued buying at higher price levels in the domestic market.
Despite the decline in futures, prices in the local bullion market held firm on Friday, January 16. 24-carat gold was trading at Rs1,43,610 per 10 gm, 22-carat gold stood at Rs 1,31,640 per 10 gm and 18-carat gold was priced at around Rs 1,07,710 per 10 gm.
By Thursday evening, gold futures on MCX slipped 0.63 percent, or about Rs 910, to settle at Rs 1,42,243 per 10 gram. Silver futures witnessed a sharper correction, falling 3.48 percent, or nearly Rs 10,000, to around Rs 2,78,000 per kg.
Commodity analysts said the recent price correction was expected after the sharp upward movement seen over the past few sessions. Reduced demand at elevated prices added further pressure on precious metals.
Outlook: How high can prices go?
Market analysts believe silver generally outperforms gold during bullish phases, often rising 1.5 to 2 times more than gold—a trend currently visible in the market. According to SAMCO Securities, silver prices on MCX could move towards Rs 3.94 lakh per kg in the longer term. Meanwhile, Motilal Oswal has projected that gold prices may climb up to Rs 1.60 lakh per 10 gm.
Why gold prices differ across cities
The rates issued by the India Bullion and Jewellers Association (IBJA) do not include 3% GST, making charges, or jewellers’ margins, which leads to price variations across cities. The Reserve Bank of India uses IBJA rates to determine prices for Sovereign Gold Bonds, while many banks rely on them to set gold loan values.
Despite short-term volatility, precious metals have delivered strong returns over the past year. In 2025, gold prices surged by nearly 75 percent, rising from Rs 76,162 per 10 gram at the end of 2024 to Rs 1,33,195 by December 31, 2025.
Silver posted even sharper gains, climbing 167 percent during the same period. Prices jumped from Rs 86,017 per kg at the end of 2024 to Rs 2,30,420 per kg by the close of 2025.