A powerhouse US dollar sent shockwaves through precious metals Tuesday, sparking early declines in gold and silver prices before silver mounted a comeback. MCX April gold futures slid 0.65% to 1,60,541 rupees per 10 grams around noon, reflecting profit-booking after prior surges. March silver futures flipped from red to green, up 0.46% at 2,66,542 rupees per kg.
Global cues mirrored the turbulence: Comex April gold dropped 1.1% to $5,170.70/oz, spot gold 1.5% to $5,150.38/oz after touching three-week highs. Spot silver cratered 3.1% to $85.50/oz from recent peaks. The dollar index’s 10.19% intraday jump to 97.89 pressured non-dollar buyers, amplifying the downturn.
Tariff jitters lingered post-US Supreme Court rejection of Trump’s emergency measures, with the president threatening escalated duties on trade deal defectors. Iran’s negotiations under a ticking 10-day Trump deadline intensified geopolitical risks, bolstering gold’s appeal as a hedge.
Post-Lunar New Year, China’s markets reopened, enhancing liquidity. Silver’s premium over Western spots highlights supply shortages and industrial hunger in the region. Looking ahead, analysts see sustained upside potential from enduring demand drivers.
Technical levels for gold include supports at 1,60,600/1,58,800 rupees and resistances at 1,63,300/1,65,000. Silver eyes supports at 2,61,000/2,56,600 and resistances at 2,70,000/2,78,000 rupees on MCX. Volatility persists, but optimism rules for strategic positioning.