Mumbai, February 24: The strength of the US dollar and profit booking after a significant rise in the previous session led to a decline in the prices of precious metals, including gold and silver, during early trading on Tuesday. However, silver later experienced a rebound.
Investors remained cautious due to uncertainties surrounding tariffs and ongoing peace talks between the US and Iran, which helped limit the extent of the price drop.
As of noon (approximately 12:06 PM), the April futures price for gold on the Multi Commodity Exchange (MCX) fell by 0.65% to ₹160,541 per 10 grams. Initially, silver prices also saw a decline, but by the time of reporting, they had risen by 0.46% to ₹266,542 per kilogram.
On COMEX, the April futures price for gold dropped by 1.1% to $5,170.70 per ounce, while spot gold fell by 1.5% to $5,150.38 per ounce. Earlier in the day, gold had reached a three-week high. Spot silver decreased by 3.1% to $85.50 per ounce, down from a two-week high in the previous session.
The dollar index saw an intra-day increase of 10.19%, reaching 97.89, making gold and silver more expensive for holders of other currencies.
Analysts noted that uncertainty surrounding tariffs remains following a ruling by the US Supreme Court against President Donald Trump’s emergency tariffs. This situation may support demand for gold as a hedge against geopolitical risks. President Trump has warned that countries that back out of trade agreements will face higher tariffs.
The analysts also mentioned that the approaching ten-day deadline for a “meaningful agreement” with Iran has heightened geopolitical tensions, which could provide short-term support for gold prices.
With the reopening of the precious metals futures market after the Lunar New Year holiday in China, global liquidity conditions have improved. Analysts indicated that silver is trading at a premium compared to Western spot prices, reflecting local supply shortages and strong industrial demand.
Despite the fluctuations, the medium- and long-term outlook remains positive, supported by industrial demand and structural supply constraints.
An expert suggested that gold could find support at ₹160,600 and ₹158,800, while resistance levels are at ₹163,300 and ₹165,000. For MCX silver, support levels are at ₹261,000 and ₹256,600, with resistance at ₹270,000 and ₹278,000.
– DBP/
