Gold-Silver Price Update: Gold, Silver Prices Rising Again After Big Drop

New Delhi: Gold and silver prices have plummeted to record lows in the last four days. Silver has fallen by nearly 2 lakh rupees from its record high, while gold prices have dropped by 56,000 rupees. This decline is due to continuous short-selling and selling pressure in gold and silver.

On January 29, silver touched a record high of 4.20 lakh rupees in the futures market, but by February 2, it had fallen to 2.25 lakh rupees. In just four days, it dropped by nearly 2 lakh rupees. On February 2, it hit the lower circuit limit almost three times in the futures market. The same was observed on Sunday, with the lower circuit being triggered three times.

Similarly, gold also surpassed its record high of 1.93 lakh rupees on January 29, from where it fell by approximately 56,000 rupees to reach 1.37 lakh rupees on February 2.

Recovery after the fall, has a bottom been formed?

On MCX, on February 2 (Monday), silver fell by 39,000 rupees to 2.25 lakh rupees by 12:30 PM, but by 5 PM, the decline had narrowed to 6,000 rupees, and the price rose to 2.60 lakh rupees. This indicates increased buying at lower levels. Therefore, it is believed that silver has now formed a bottom.

Similarly, gold also fell by approximately 10,000 rupees by 12:30 PM on Monday, trading above 1.37 lakh rupees, but by 5 PM, buying increased, and the price rose above 1.50 lakh rupees.

What are the experts saying?

According to market analysts, this decline was due to profit booking, not any major structural weakness. Therefore, some buying is happening at lower levels. The technical support level for gold is seen around ₹1,40,000–₹1,45,000. If buying resumes at this level, a strong recovery could follow. Furthermore, if gold closes above 1.55, another rally could begin.

Meanwhile, the support level for silver is estimated to be between ₹2,44,000 and ₹2,55,500. Increased buying activity is expected around this zone, potentially leading to another rally in silver prices. Some experts have stated that this decline is not part of a long-term bullish trend, but rather a minor correction, presenting a buying opportunity in the bullion market. If demand remains strong at the support levels, further gains are possible.