Volatility gripped India’s precious metals market this week. Wednesday’s robust rally erased Tuesday’s losses, but Thursday saw gold and silver prices ease amid a firmer US dollar.
MCX data shows April gold contract plunging to 1,57,701 rupees for 10 grams, its session low. Silver for March delivery dipped to 2,58,730 rupees per kg.
By mid-morning, gold was down 378 rupees or 0.24% at 1,58,377, while silver lost 1,015 rupees or 0.39% to trade at 2,62,003 per kg.
The catalyst? Dollar index rose to 96.94 from 96.83, fueled by stronger-than-expected US jobs report. January saw unemployment fall to 4.3%, hinting at Fed rate stability.
According to Motilal Oswal’s Manav Modi, 13-month job growth peaked, but revisions slashed early 2025 additions to 1,81,000 from 5,84,000.
Geopolitical jitters from unresolved US-Israel talks on Iran had recently boosted safe-haven demand. No breakthrough emerged, but dialogue persists.
Technical levels: Gold support at 1,56,000 rupees, resistance at 1,60,500. Comex gold range: $5,000-$5,150, off $5,500+ peaks. Silver: $80-$87 vs prior $121 highs.
Long-term sentiment remains positive for gold, with dips seen as buying opportunities. Silver demand looks steady, though volatility lingers.
Traders brace for US CPI and UK GDP data on Friday, pivotal for future direction in these markets.