Gold, silver prices decline amid profit booking, stronger dollar

Gold and silver prices declined moderately on Tuesday amid dollar strength and profit-taking, though geopolitical risks provided ongoing medium-term support for precious metals.

MCX February gold futures fell 0.33% intraday to ₹1,57,550 per 10 grams, while March silver futures dropped 1.92% to ₹2,57,567 per kg. Earlier in the session, silver had plunged over 2% to a daily low of ₹2,57,100 per kg, with gold dipping 1.3% to ₹1,56,001 before pared losses.

The dollar index strengthened to 97.01 from 96.82 in prior trading, increasing bullion costs for foreign buyers holding other currencies.

Market pricing currently reflects expectations of at least two 25-basis-point rate cuts this year, typically supportive for non-yielding metals. Meanwhile, heightened U.S.-Iran tensions persisted, as Washington advised American-flagged vessels to steer clear of Iranian waters despite diplomatic signals.

Analysts noted COMEX Gold retains its broader upward trajectory, with recent dips representing profit-taking and technical consolidation. Strong buying interest has emerged in COMEX Silver near the $65–$70 support band, aligning with historical swing lows and long-term trend support.

“Gold finds support at ₹1,56,600 and ₹1,54,800 levels, with resistance at ₹1,59,100 and ₹1,60,000. Silver shows support at ₹2,55,500 and ₹2,48,800, facing resistance at ₹2,68,000 and ₹2,74,000,” stated a market analyst.

Persistent structural supply shortages coupled with steady industrial demand continue reinforcing silver’s bullish bias. Similarly, sustained safe-haven interest and consistent central bank purchases support gold’s long-term outlook.

Investors await key U.S. data releases, including January’s non-farm payrolls report and inflation figures, for clearer signals on the Federal Reserve’s monetary policy path.

(With inputs from IANS)