Mumbai, February 26 (IANS). Gold and silver prices fell on Thursday due to profit booking by investors. However, the decline was limited due to rising geopolitical tensions and weakness in the dollar.
On the Multi Commodity Exchange (MCX), gold futures for April delivery fell 0.38 percent intra-day to Rs 1,60,529 per 10 grams. At the same time, silver for March delivery fell by 1.46 percent to Rs 2,64,395 per kg.
In the previous session, MCX April Gold contract and March Silver contract had gained 0.74 per cent and 3 per cent respectively, after which investors booked profits.
There remains uncertainty regarding American tariffs (import duties). There is confusion on trade policy between the different stances of the US Supreme Court and President Donald Trump. Trump continues to say that tariffs are an important part of his trade strategy.
The US charges a 10 percent duty on some imports, and for some countries the rate can be 15 percent or higher. Ongoing uncertainty over tariffs and the status of trade negotiations have supported the precious metals.
The dollar index fell 0.13 percent to 97.58, making gold and silver cheaper for buyers paying in foreign currencies.
Analysts say that the demand for safe haven has increased due to the third round of nuclear talks between the US and Iran to be held in Geneva on February 27 and US military activities in the Middle East.
From a medium and long term perspective, the trend for precious metals remains positive. After recent fluctuations, Comex Gold is trading in the range of $5,100 to $5,300.
In Comex Silver, if the price sustains above $92 to $96, then fresh gains may be seen towards $100 to $105 and old highs may be retested.
According to an analyst, the support levels of gold are at Rs 1,60,000 and Rs 1,57,700, while the resistance is at Rs 1,62,500 and Rs 1,64,000. MCX Silver support is at Rs 2,63,600 and Rs 2,58,800, while resistance is at Rs 2,74,000 and Rs 2,80,000.
Market experts predict that gold and silver may remain volatile in this week’s session. He has advised investors to book profits at higher levels and consider new purchases in case of decline.
–IANS
DBP/
