Gold and silver prices declined for a second straight session as investors assessed mixed US economic data and awaited clarity on the US Federal Reserve’s interest rate trajectory. A stronger dollar and easing geopolitical tensions weighed on safe-haven demand
COMEX Gold is trading within the USD 4,850–USD 5,100 range after a sharp correction from recent highs. File Pic
Gold and silver prices declined for a second consecutive session on Tuesday, as investors analysed mixed US economic data and waited for cues on the US Federal Reserve’s policy path.
MCX gold April futures dipped 0.56 per cent to Rs 1,53,889 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures declined 1.18 per cent to Rs 2,37,064 per kg.
Gold prices in Mumbai
While the gold prices on the MCX have been declining, the price of yellow metal in the market has also been experiencing a downward trajectory since the last few days. Gold prices in Mumbai on Tuesday fell down by Rs 1,310 and were recorded at Rs 1,56,570 for 10 grams of 24-carat gold. On the other hand, the price of 22-carat gold in Mumbai stood at Rs 1,43,530 for 10 grams. While the price since the start of this month has been extremely volatile, the investors are quite confused about investing in the precious metal.
Investors remain undecided on whether softer inflation readings will eventually translate into easier monetary policy or whether stronger labour market data will keep rates higher for longer, analysts said.
Dollar prices surges by 0.21 per cent
The dollar index surged 0.21 per cent to 97.12, tracking the moderation in US CPI (consumer price index) in January. A stronger dollar made greenback-priced bullion more expensive for other currency holders, reported IANS.
In international markets, spot gold dipped below the USD 5,000 mark to USD 4,992 an ounce and spot silver slid nearly 3 per cent. The ease in prices came as US consumer prices in January rose less than expected even as job growth surprised on the upside, complicating the outlook for near‑term rate cuts.
COMEX Gold is trading within the USD 4,850–USD 5,100 range after a sharp correction from recent highs above USD 5,500–USD 5,600, analysts said.
Ease in geopolitical tensions also reduced safe haven demand for gold as an Iranian diplomat said that Iran is seeking a nuclear agreement with the United States that would yield economic benefits for both sides.
Gold shows resistance at Rs 1,50,000
"Gold has support at Rs 1,45,000 and Rs 1,50,000 while resistance at Rs 1,60,800 and Rs 1,65,000. MCX silver has support at Rs 2,25,000 and Rs 2,60,000, and resistance is at Rs 3,00,000 and Rs 3,25,000," an analyst said.
The broader trend in precious metal remains constructive due to ongoing geopolitical tensions, strong central bank buying, and investor flight from sovereign bonds and currencies.
Investors remain keen on cues over global liquidity conditions, US dollar movement, bond yields, progress on the US-Iran talks and ongoing negotiations to end the Russia-Ukraine war.
(With inputs from IANS)
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
