Gold and silver prices slipped on Thursday after a brief rise, as a stronger US dollar and upbeat US jobs data pressured global bullion markets. MCX gold April futures declined 0.24 per cent to Rs 1,58,400 per 10 grams
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Gold and silver prices, after experiencing a slight increase on Wednesday, yet again dipped marginally on Thursday. The major reason for the gold price drop is said to be the strengthening of the US dollar.
As reported by news agency IANS, MCX gold April futures dipped 0.24 per cent to Rs 1,58,400 per 10 grams on an intraday basis. Meanwhile, MCX silver March futures declined 0.72 per cent to Rs 2,61,124 per kg.
Gold prices in Mumbai
Amid the highly volatile commodity market, the gold prices, after almost touching Rs. 1.6 lakh mark, have now dropped. The price of 24-carat gold in Mumbai on Thursday was recorded at Rs 1,58,400 for 10 grams. Furthermore, the 22-carat gold in Mumbai was priced at Rs 1,45,200 for 10 grams. While the gold price remains highly volatile, the demand for the yellow metal has been constant in tier-1 and tier-2 cities of India.
Why did gold prices fall?
The dollar index surged to 96.94 on Thursday from 96.83 in the previous session, due to strong jobs data from the US that suggested underlying economic health. The sudden surge played a direct role in the dipping of gold prices across the globe.
Analysts said that US job growth unexpectedly accelerated in January and the unemployment rate fell to 4.3 per cent, signs of labour market stability that could give the Fed room to keep interest rates unchanged for some time while policymakers monitor inflation.
Manav Modi, an analyst from Motilal Oswal, said, "The largest increase in payrolls in 13 months likely exaggerates the labour market's health, as revisions showed the economy added only 1,81,000 jobs in 2025 instead of the previously estimated 5,84,000," as cited by IANS.
Nifty and Sensex open in red
After a sudden surge in market indices over the last few days, selling pressure returned to the Indian stock markets on Thursday. Nifty and Sensex both opened in the red amid the absence of any fresh trigger, even as foreign investors continued to show positive interest in the markets.
As reported by news agency ANI, the Nifty 50 index opened at 25,906.70, declining by 47.15 points or 0.18 per cent, whereas the BSE Sensex opened at 83,968.43, down by 265.21 points or 0.31 per cent.
Chief Investment Strategist VK Vijayakumar, while speaking about the drop on Thursday, said, “Support to the market has to come from earnings growth, and there are sectors like automobiles, jewellery, hotels, segments of capital goods, telecom and financials that are doing well on the earnings front and have the potential to continue to do well. Even with occasional profit booking, the undertone of the market will remain resilient, mainly because there is a trend of FIIs turning buyers."
Investors remain keen on US inflation data due on Friday for more monetary policy cues and on the UK GDP data.
(With inputs from IANS)
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