Gold and Silver Prices Ease Today: Profit-Taking Seen, Experts Spot Trading Opportunities in Commodities

Gold and silver prices witnessed mild weakness on Tuesday, as investors booked profits after the recent sharp rally that pushed precious metals to record highs. While global uncertainty continues to support the long-term outlook for bullion, short-term consolidation and volatility are visible across domestic and international markets. Market experts believe that despite today’s softness, select commodities like gold and crude oil may still offer trading opportunities.

Gold and Silver Slip on MCX

In the domestic market, prices softened during late morning trade. Around 12:00 PM, the February gold contract on the Multi Commodity Exchange (MCX) was trading at ₹1,41,498 per 10 grams, down by ₹534 or 0.38%.

Similarly, silver prices also came under pressure, with the March silver contract slipping by ₹1,720 or 0.64% to trade near ₹2,66,788 per kilogram. The decline is largely attributed to profit-taking, as prices had surged sharply in previous sessions.

Market participants are not interpreting this fall as a reversal of trend, but rather as a healthy correction after an extended rally.

Global Markets Show Stability After Record Highs

In international markets, gold and silver prices appeared relatively stable after witnessing extreme volatility in the previous session. On Monday, gold prices briefly crossed $4,600 per ounce, while silver surged to multi-year highs. These record levels were driven by concerns over the independence of the US Federal Reserve, after reports suggested political pressure on the central bank.

However, on Tuesday, investors chose to lock in profits amid lingering geopolitical and economic uncertainty. While prices cooled slightly, global risk factors continue to provide strong underlying support to precious metals.

Why Prices Are Cooling Today

Experts point out that the recent rally in gold and silver was extremely sharp, leaving room for short-term consolidation. Rising geopolitical tensions, uncertainty around US monetary policy, and concerns over global economic stability had pushed investors aggressively toward safe-haven assets.

Now, with prices at elevated levels, traders are selectively booking profits. This has resulted in a mild pullback, especially in silver, which has seen outsized gains in recent months.

Other Commodities: Mixed Trend on MCX

Apart from precious metals, other commodities showed a mixed performance on the MCX:

• Copper (January contract) was trading lower by ₹19.65 or 1.49% at ₹1,296.20, pressured by concerns over global demand.

• Crude oil (January contract) gained ₹72 or 1.35%, trading around ₹5,409, supported by geopolitical tensions and supply-related worries.

• Natural gas (January contract) edged down by ₹0.90 or 0.30% to trade near ₹303.60, reflecting subdued buying interest.

The divergence highlights how geopolitics and supply dynamics are impacting each commodity differently.

Where Can Investors Look for Profits Today?

In today’s Commodity Calls segment, Manoj Kumar Jain of Prithvi Finmart shared his trading outlook, identifying gold and crude oil as potential opportunities despite the current softness.

Gold Trading Strategy

• Buy near: ₹1,40,000 (MCX February contract)

• Target: ₹1,44,000

• Stop-loss: ₹1,38,000

According to Jain, the broader trend in gold remains bullish due to global uncertainty, and dips may provide attractive entry opportunities for short-term traders.

Crude Oil Trading Strategy

• Buy near: ₹5,300 (MCX January contract)

• Target: ₹5,400

• Stop-loss: ₹5,245

Crude oil prices are being supported by geopolitical developments and supply concerns, making it a favorable trading candidate in the near term.

Outlook: Volatility Likely to Continue

Looking ahead, experts expect continued volatility in commodity markets, especially in gold and silver. While long-term fundamentals remain strong due to geopolitical risks, central bank uncertainty, and inflation concerns, short-term corrections and range-bound movements are likely.

For traders, disciplined strategies with clear stop-loss levels will be essential. For investors, precious metals still offer portfolio stability, but fresh investments should be approached with caution at current elevated levels.

Bottom Line

Today’s dip in gold and silver prices reflects profit-taking after a historic rally, not a breakdown of the bullish trend. With global uncertainty still high, precious metals remain well-supported, while commodities like crude oil are presenting selective trading opportunities. Staying informed, managing risk, and avoiding emotional trades will be key to navigating the current commodity market environment.

Disclaimer: This article is for informational purposes only. Commodity market investments are subject to market risks. Investors and traders should consult certified experts before taking any financial positions.