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Gold and silver prices remained volatile on Friday amid weak global cues and a stronger US dollar, keeping investors cautious in both domestic and international markets.

On the Multi Commodity Exchange (MCX), silver opened sharply lower at 2,34,063, down 9,752 points or about 4 per cent from its previous close of 2,43,815. Prices extended losses during the session and touched an intraday low of 2,29,187, marking a decline of 14,628 points or nearly 6 per cent from the previous close.

Gold also opened lower on the MCX. The yellow metal began trade at 1,49,396, falling 2,675 points or about 1.76 per cent from its previous close of 1,52,071. Gold prices hovered near the day’s low levels in early trade, reflecting cautious sentiment among investors.

In the international markets, precious metals edged higher on Friday but were headed for a second consecutive week of losses. Gold and silver came under pressure after a sharp sell-off in global technology stocks, and a stronger US dollar erased gains seen during a brief rebound earlier in the week.

Spot gold rose 1.1 per cent to $4,822.69 per ounce by 0320 GMT. However, it was still down 1.2 per cent for the week. US gold futures for April delivery slipped 1 per cent to $4,840.40 per ounce.

Spot silver gained 0.4 per cent to $71.50 per ounce after plunging 19.1 per cent in the previous session. Trading in silver remained highly volatile on Friday. Prices rose as much as 3 per cent after having fallen nearly 10 per cent earlier to below the $65 level, which marked a more than one-and-a-half-month low.

Silver was down nearly 16 per cent for the week. In the previous week, the metal had fallen 18 per cent, registering its biggest weekly decline since 2011.

Among other precious metals, spot platinum declined 3.6 per cent to $1,916.60 per ounce after having touched an all-time high of $2,918.80 on January 26. Palladium rose 1.4 per cent to $1,639.18 per ounce. Both platinum and palladium were lower for the week.

Gold and silver prices have witnessed sharp swings in recent sessions, leading to increased uncertainty among investors. Market participants attributed the volatility to profit booking, high margin requirements on exchanges and easing global tensions.

Ajay Kedia, Managing Director of Kedia Commodities, said 2026 would remain an important year for bullion markets due to multiple factors influencing prices. He said silver had witnessed exceptional volatility following a prolonged rally. “Silver has witnessed extreme fluctuations after a strong move over the last three years. High exchange margins and profit booking have led to the recent correction,” Kedia said.

He said margin requirements on silver contracts were currently very high, which had reduced speculative participation. “Margins on silver are around 64 per cent. Because of this, speculative and trading money is staying away for the time being,” he said.

Kedia said easing geopolitical tensions had also contributed to profit booking in bullion prices. “Signs of de-escalation in global tensions and improving trade relations have reduced safe-haven demand in the short term,” he said. He added that this had resulted in a sharp fall in international silver prices, which also impacted domestic markets.

Talking about silver fundamentals, Kedia said the metal had benefited from strong investor demand in recent years. “Silver has structural supply constraints, while demand has increased due to clean energy, electric vehicles and solar panel usage,” he said.

He added that silver had seen strong financialisation, with increased investor participation. “Earlier, silver was mainly an industrial metal, but now it has also become a financial asset. This attracted large investor participation,” Kedia said.

On gold, Kedia said prices remained supported by long-term fundamentals, although short-term volatility was likely to continue. “Gold may remain volatile in the near term, but its fundamentals are still supportive,” he said.

He said some consolidation was natural after three years of strong gains in bullion prices. “Every asset class has a cycle. After three years of strong upside, some correction and consolidation should be expected,” he said.

Advising investors, Kedia said caution was needed in the short term. “Investors should book partial profits and continue SIPs. Fresh buying should be done only at lower levels,” he said.

He said silver could witness further correction before stabilising, while gold prices could form a base at lower levels in the coming months. “Silver is highly volatile by nature. It may correct further before becoming stable,” he said.

The sharp swings in gold and silver prices have kept investors cautious, with market participants closely monitoring global developments and price trends. Volatility is expected to remain elevated in the near term as markets adjust after the recent sharp moves.