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.

Silverâ??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.

Analysts called the sharp drop in precious metals a "technical correction" due to longer-term drivers such as geopolitical uncertainty, central-bank buying, and macro uncertainty remaining intact.

The broader uptrend in COMEX gold remains intact, with the recent decline reflecting profit booking and healthy price digestion rather than trend reversal, they said.

Market watchers advised investors to do staggered allocations rather than lump-sum investments to reduce entry risk.

Strong support is seen in the Rs 1,37,000 to Rs 1,42,000 zone for MCX gold futures, while resistance is anchored around the Rs 1,65,000 to Rs 1,75,000 zone, they said.

Regarding COMEX silver, they said that a sustained move beyond $85â??$92 could lead to an upside momentum up to $95â??$105, with the medium- to long-term outlook remaining constructive on steady industrial demand and structural supply constraints.

/IANS