On the Multi Commodity Exchange (MCX), gold April futures slipped 0.58 per cent to Rs 1,60,664 per 10 grams in intraday trade around 10:50 am. Silver March futures also fell 0.33 per cent to Rs 2,64,450 per kg
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Gold and silver prices declined on Tuesday as investors booked profits following sharp gains in the previous trading session, while a stronger US dollar added further pressure on bullion.
On the Multi Commodity Exchange (MCX), gold April futures slipped 0.58 per cent to Rs 1,60,664 per 10 grams in intraday trade around 10:50 am. Silver March futures also fell 0.33 per cent to Rs 2,64,450 per kg.
The decline comes after a strong upward movement in precious metals, prompting traders to lock in gains amid evolving global cues.
Global trends weigh on bullion prices
In international markets, gold and silver also witnessed notable corrections. On Comex, gold futures for April delivery dropped 1.1 per cent to USD 5,170.70 per ounce, while spot gold declined 1.5 per cent to USD 5,150.38 after touching a three-week high earlier in the day.
Silver prices saw sharper losses, with spot silver plunging 3.1 per cent to $85.50 per ounce, following a two-week high in the previous session.
A key factor behind the decline was the strengthening of the US dollar. The dollar index surged 10.19 per cent on an intraday basis to 97.89, making gold and silver more expensive for holders of other currencies and thereby reducing demand.
Geopolitical developments limit downside
Despite the fall, analysts believe that geopolitical factors are helping limit deeper losses in gold prices. Uncertainty surrounding trade tariffs, particularly after a US Supreme Court ruling against emergency tariffs imposed under former US President Donald Trump, continues to support gold’s appeal as a safe-haven asset.
Additionally, ongoing tensions involving the US and Iran, including a reported 10-day deadline for a "meaningful deal," are contributing to near-term support for bullion prices.
Market participants are closely monitoring these developments, as any escalation could drive renewed demand for safe-haven investments like gold.
Outlook remains positive despite volatility
Analysts maintain that the medium, to long-term outlook for gold and silver remains constructive, supported by strong industrial demand and structural supply constraints.
In China, the reopening of the precious metals futures market after the Lunar New Year has boosted global liquidity. Silver, in particular, is trading at a premium to Western spot prices, reflecting tight supply conditions and robust industrial demand.
From a technical perspective, gold is expected to find support at Rs 1,60,600 and Rs 1,58,800, with resistance levels seen at Rs 1,63,300 and Rs 1,65,000. For silver, support is placed at Rs 2,61,000 and Rs 2,56,600, while resistance is likely at Rs 2,70,000 and Rs 2,78,000.
Overall, while short-term fluctuations continue due to profit booking and currency movements, the broader trend for precious metals remains resilient.
(With inputs from IANS)
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