Silver & gold prices see free fall from peak levels in futures trade

New Delhi: Prices of silver and gold saw one of their steepest single-day fall in the past few months in futures trade on Friday as investors rushed to monetise their peaking investment value.

Silver futures crashed 17 per cent to Rs 3.32 lakh per kilogram, while gold tanked 9 per cent to Rs 1.54 lakh per 10 grams, tracking weak trends in the global markets and surging American currency.

On the Multi Commodity Exchange (MCX), silver futures for March delivery plummeted by Rs 67,891, or 16.97 per cent, to Rs 3,32,002 per kilogram, marking its steepest fall in a single day.

The metal surged about 9 per cent to hit a record of Rs 4,20,048 per kg on Thursday, before settling at Rs 3,99,893 per kg.

Similarly, gold futures also tumbled as investors booked heavy profits on the commodities bourse. The February contract nosedived by Rs 15,246, or 9 per cent, to Rs 1,54,157 per 10 grams.

On Thursday, the yellow metal soared nearly 9 per cent, to a new peak of Rs 1,80,779 per 10 grams, before easing to Rs 1,69,403 per 10 grams on the MCX.

Gold and silver exchange traded funds (ETFs) have dropped up to 20 per cent in the domestic markets.

According to commodities market experts, gold and silver prices cooled off amid reports that the US administration is preparing to nominate Kevin Warsh to become the next Federal Reserve Chair. The former Fed Governor is considered as a monetary policy hawk.

An expert said: “Warsh could adopt a more hawkish stance strengthening the US dollar, putting pressure on precious metals.”

Meanwhile, President Donald Trump on Thursday said that he would announce a successor to Federal Reserve Chair Jerome Powell on Friday morning. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.45 per cent higher at 96.57.

In the international market, silver futures on the Comex for March delivery nosedived by $19.30, or 16.87 per cent, to hit an intraday low of $95.12 per ounce. It touched a record of $121.78 per ounce in the previous session.

Gold futures on the Comex for April delivery also plummeted by $392.1, or 7.32 per cent, to $4,962.7 per ounce, after hitting a lifetime high of $5,626.8 per ounce on Thursday.