Gold and silver prices dip amid profit booking as US dollar gains
Mumbai, Feb 24
Gold and silver prices retreated on Tuesday, amid uptick in US dollar and profit‑taking after huge gains in previous session.
Investors weighed in tariff uncertainty and ongoing US-Iran peace talks which capped the decline in prices.
MCX gold April futures dipped 0.58 per cent to Rs 1,60,664 per 10 grams around 10.50 am on an intraday basis. Meanwhile MCX silver March futures declined 0.33 per cent to Rs 2,64,450 per kg.
On Comex, gold futures for April delivery fell 1.1 per cent to $5,170.70 an ounce, while spot gold dropped 1.5 per cent to $5,150.38, retreating from a three‑week high earlier in the day. Spot silver plunged 3.1 per cent to $85.50 per ounce, after hitting a two‑week high in the previous session.
The dollar index surged 10.19 per cent on an intra-day basis to 97.89 making bullion more expensive for holders of other currencies.
Tariff-related uncertainty after the Supreme Court's ruling against US President Donald Trump's emergency tariffs will drive gold's appeal as a hedge against geopolitical risks, analysts said. President Trump has warned countries against backing away from trade deals, saying such action will invite higher tariffs.
Analysts also said that heightened geopolitical tensions due to US President Donald Trump's 10-day deadline for a "meaningful deal" with Iran drawing closer provides near term support to gold prices.
In China, the precious metals futures market reopened after the Lunar New Year holiday boosting the global liquidity conditions. Silver traded at a strong premium to Western spot prices, reflecting tight local supply and robust industrial demand, analysts noted.
Medium and long-term outlook remains constructive, supported by industrial demand and structural supply constraints despite volatility, they added.
"Gold has support at Rs 1,60,600 and Rs 1,58,800 while resistance at Rs 1,63,300 and Rs 1,65,000. MCX silver has support at Rs 2,61,000 and Rs 2,56,600, and resistance is at Rs 2,70,000 and Rs 2,78,000," an analyst said.
— IANS
Reader Comments
With wedding season approaching, even a small dip is welcome news. Was worried about the budget for jewellery, but maybe now we can get a slightly better deal. Hope it stays around this level for a few more weeks.
The article mentions support and resistance levels clearly, which is helpful. But I wish there was more analysis on how domestic factors like our own import duties affect these MCX prices compared to international rates. The dollar index moving 10% intraday is huge!
Interesting to see how interconnected everything is. Peace talks with Iran, US tariffs, and even the Chinese New Year holiday all playing a role from thousands of miles away, affecting prices in Mumbai. Global markets are fascinating.
Silver at ₹2.64 lakh per kg! Still feels very high for the common man. The industrial demand angle is key. With India pushing for solar and electronics manufacturing, silver demand might keep prices firm in the long run, despite these daily fluctuations.
As a small investor, this volatility is nerve-wracking. One day up, next day down. The "constructive long-term outlook" is what I'm holding onto. Maybe SIP in gold ETFs is the way to go instead of physical gold.
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