Gold and silver prices slipped marginally after a sharp rally driven by global trade uncertainty, geopolitical tensions and a weaker US dollar. MCX gold and silver futures saw strong gains before cooling slightly on Thursday
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Gold and silver prices, after experiencing a sudden surge on Wednesday, fell marginally on Thursday. The high volatility in precious metals is because of the rise in global trade uncertainty, geopolitical tensions and decline in the US dollar.
MCX gold April futures gained 0.76 per cent on Wednesday to Rs 1,61,180 per 10 grams around 11:30 am on an intraday basis. Meanwhile, the MCX silver March futures gained 3.20 per cent to Rs 2,69,075 per kg.
International gold prices, including US futures, also climbed as investors rushed for safe-haven buying amid persisting US-Iran tensions and uncertainty over US tariffs.
Gold prices in Mumbai
Amid the volatile commodity market, yellow metal in Mumbai on Thursday during the morning hours experienced a very marginal change. Falling by a mere Rs 40, the price of 24-carat gold in Mumbai was recorded at Rs 1,61,680 for 10 grams. Whereas the 22-carat gold prices in Mumbai stood at Rs 1,48,200 for 10 grams.
US dollar continues to fall
On the other hand, the US dollar continues to fall in the aftermath of persistent trade uncertainty as the US Supreme Court struck down high tariffs imposed by President Trump last week, reported IANS.
The dollar index eased by 0.17 per cent to 97.68, making greenback-backed bullion cheaper for buyers in overseas currencies.
The US is currently collecting the uniform 10 per cent tariffs on imports, even as White House officials said tariffs will be increased to 15 per cent soon, according to multiple reports.
Analysts noted that the People's Bank of China (PBOC) purchased gold for the fifteenth consecutive month in January, and continued central bank purchases will support precious metals prices in the near term, as reported by IANS.
Gold MCX
Strong buying interest is evident in the USD 70 – USD 75 support zone for COMEX Silver, and the medium- to long-term outlook is buoyed by industrial demand and structural supply constraints, market participants said.
"Gold has support at Rs 1,58,800 and Rs 1,56,300, while resistance is at Rs 1,61,400 and Rs 1,63,000. MCX silver has support at Rs 2,54,400 and Rs 2,48,800, and resistance is at Rs 2,66,000 and Rs 2,71,000," an analyst said.
(With inputs from IANS)
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