Gold and silver prices dipped moderately on Tuesday due to a stronger dollar and profit booking. MCX gold futures fell 0.33 per cent while silver dropped nearly 2 per cent, even as geopolitical tensions and rate cut expectations continued to support precious metals in the medium term
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Amid the easing global uncertainties, gold and silver prices continue to dip moderately on Tuesday as well. The sudden drop in gold prices is due to a stronger dollar and profit booking, even as geopolitical uncertainties extended medium-term support to precious metals.
As reported by news agency IANS, the MCX gold February futures on Wednesday dipped 0.33 per cent to Rs 1,57,550 per 10 grams on an intra-day basis. Whereas the MCX silver March futures declined 1.92 per cent to Rs 2,57,567 per kg.
Gold prices in Mumbai
While the sudden dip in prices brings a sigh of relief to the buyers, bulk investors and traders are now focusing on buying the gold. The price of 24-carat gold in Mumbai on Tuesday stood at Rs 1,58,060 for 10 grams; an increase of Rs 1,330 from Monday. On the other hand, the price of 22-carat gold in Mumbai was recorded at Rs 1,44,900 for 10 grams.
Silver prices
Earlier, silver prices dipped over 2 per cent to the day's low of Rs 2,57,100 per kg, and gold prices dipped 1.3 per cent to Rs 1,56,001 per 10 grams, before the precious metals rebounded slightly.
As per IANS, the dollar index rose to 97.01 on Tuesday from 96.82 in the previous session, making greenback-backed bullion slightly expensive for overseas buyers.
Impact of monetary policy on markets
Markets are currently pricing in at least two rate cuts of 25 basis points this year, which is generally positive for bullion due to expectations of a more relaxed monetary policy. Despite indications of diplomatic progress, tensions between the US and Iran remain high, as Washington cautioned US-flagged ships to avoid Iranian seas, reported IANS.
Furthermore, strong buying interest is visible in the USD 65–USD 70 support band for COMEX Silver, aligned with prior swing lows and long-term trend support, they added.
The analyst, while highlighting the volatile gold prices, said, “Gold has support at Rs 1,56,600 and Rs 154,800 zones, while resistance is at Rs 1,59,100 and Rs 1,60,000. Silver has support at the Rs 2,55,500 and Rs 248,800 levels, while resistance is at Rs 2,68,000 and Rs 2,74,000," as cited by IANS.
(With IANS inputs)
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