Mumbai, Feb 6 || Gold prices fell moderately, while silver lost over 3 per cent on Friday due to a stronger dollar and a rout in global technology stocks.
MCX gold February futures fell 0.97 per cent to Rs 1,50,590 per 10 grams around 10.40 am on an intraday basis. Meanwhile, MCX silver March futures plunged 3.71 per cent to Rs 2,34,775 per kg.
On the MCX, silver prices had declined as much as 6 per cent to their day's low of Rs 2,29,187 per kg earlier during the session before a strong rebound.
Commodities denominated in dollars became more expensive for holders of other currencies as the US dollar got poised for its strongest weekly performance since November, hovering close to a two-week high.
Silver’s sharp correction has reignited concerns over stretched valuations and heightened volatility, even as analysts maintained that the white metal's longer-term fundamentals remain constructive.
Investment banker JP Morgan warned that silver's rich valuations could trigger disproportionate downside during bouts of market stress, adding that downside may be cushioned in the near term, with prices stabilising for a recovery next year.