The rally in precious metals on Indian commodity exchanges hit a pause on Tuesday, with silver futures retreating from a record high as traders opted to book profits. Gold futures also moved lower in tandem, reflecting a cautious sentiment in the market.
Profit-Taking Halts Silver's Record Run
After a sustained upward movement, silver futures contracts witnessed a pullback. The price correction was primarily driven by profit-taking activity, where investors decided to cash in on recent gains, halting the metal's record-breaking rally. This is a common market phenomenon following a sharp price increase, as participants look to secure their returns.
Gold Follows Suit with Modest Decline
The weakness was not confined to silver. Gold futures also traded lower on the Multi Commodity Exchange (MCX). Specifically, the contract for February 2026 delivery saw a decline. The price fell by Rs 386, or 0.3 per cent, settling at Rs 1,30,266 per 10 grams. This business was conducted across a turnover of 13,413 lots on the exchange platform.
Market Context and Forward Outlook
The trading activity on December 2, 2025, highlights the dynamic nature of the commodity market. While the long-term fundamentals for precious metals may remain supported by various global factors, short-term fluctuations are inevitable. The day's price action underscores how investor behavior, such as profit-booking, can immediately impact futures prices. Market participants will now watch for fresh triggers that could determine the next directional move for both silver and gold on the MCX.
