Silver prices saw a sharp correction on Thursday, retreating steeply from record highs, while gold also eased in the national capital as global markets witnessed aggressive profit-booking.

According to the All India Sarafa Association, silver plunged by Rs 12,500 to Rs 2,43,500 per kg after hitting an all-time high of Rs 2,56,000 per kg in the previous session. The white metal had jumped Rs 5,000 on Wednesday before sellers stepped in.

Gold prices also moved lower in the local bullion market. Gold of 99.9 per cent purity declined by Rs 900 to Rs 1,40,500 per 10 grams (inclusive of all taxes), compared with Rs 1,41,400 per 10 grams in the previous close.

Market experts attributed the fall to position unwinding and a cooling of safe-haven demand.

"Gold extended its fall on Thursday, weighed down by long liquidation as traders reduced their positions due to ease of safe-haven demand and a stable US dollar," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Weakness was also visible in overseas markets. Spot gold slipped by USD 29.65, or 0.67 per cent, to USD 4,426.91 per ounce, while silver declined 3.22 per cent, or USD 2.51, to USD 75.67 per ounce.

Global cues added to investor caution. Traders remained on edge ahead of expected rulings by the US Supreme Court on Trump-era tariffs and the release of December labour market data in the US.

Gandhi said these events acted as headwinds for bullion prices. Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said market participants are closely tracking upcoming economic data.

He noted that the non-farm payrolls report due on Friday is expected to increase volatility and offer clearer direction for bullion markets. On the near-term outlook, analysts remain guarded.

"We expect the ongoing corrective phase in bullion prices to persist for the day, and the market remains under pressure from position unwinding and cautious investor sentiment," Saumil Gandhi of HDFC Securities said.