Mumbai, February 24 (IANS). Due to the strengthening of the US dollar and profit booking (profit booking) after huge gains in the previous session, a decline in the prices of precious metals i.e. gold and silver was recorded in early trade on Tuesday. However, later a rise was seen in silver.
Investors also kept an eye on uncertainty over tariffs and ongoing US-Iran peace talks, which limited major losses in prices.
At the time of writing (around 12:06 pm), the futures price of gold for April delivery on Multi Commodity Exchange (MCX) fell by 0.65 percent to Rs 1,60,541 per 10 grams. At the same time, there was a decline in the initial trading in silver for March delivery on MCX, but later till the time of writing the news, it saw a rise of 0.46 percent and it reached Rs 2,66,542 per kg.
On Comex, gold futures for April delivery fell 1.1 percent to $ 5,170.70 an ounce, while spot gold fell 1.5 percent to $ 5,150.38 an ounce. Earlier in the day, gold had reached a three-week high. Spot silver fell 3.1 percent to $85.50 an ounce, having hit a two-week high in the previous session.
The dollar index gained 10.19 per cent on an intra-day basis and touched 97.89, making gold and silver costlier for holders of other currencies.
Analysts say uncertainty related to tariffs remains after the US Supreme Court ruled against President Donald Trump’s emergency tariffs, which could support demand for gold as a hedge against geopolitical risks. President Trump has warned that countries that withdraw from trade agreements will be imposed with higher tariffs.
Analysts also said increased geopolitical tensions as President Trump’s 10-day deadline for a “meaningful deal” with Iran approaches, could support gold prices in the short term.
The precious metals futures market has reopened in China following the Lunar New Year holiday, leading to improved global liquidity conditions. According to analysts, silver is trading at a premium to western spot prices, reflecting local supply constraints and strong industrial demand.
Despite the ups and downs, the medium and long-term outlook remains positive, supported by industrial demand and structural supply limitations, he said.
According to an expert, gold can get support at Rs 1,60,600 and Rs 1,58,800, while there is resistance at Rs 1,63,300 and Rs 1,65,000. At the same time, for MCX Silver, Rs 2,61,000 and Rs 2,56,600 are the support levels, while Rs 2,70,000 and Rs 2,78,000 are the resistance levels.
–IANS
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