Investors’ profit booking led to a sharp reversal in domestic gold and silver prices on Thursday, even as geopolitical tensions and a weaker dollar offered some support.
MCX data reveals April gold contracts eased 0.38% to ₹1,60,529/10g in intra-day trading, while March silver dropped 1.46% to ₹2,64,395/kg. This came after Wednesday’s 0.74% gain in gold and 3% jump in silver.
The pullback reflects classic profit harvesting, but downside was capped by external factors. US tariff policies under President Trump remain a wildcard, with 10-15% duties on imports fueling market unease.
Supreme Court deliberations add to the confusion, keeping trade talks in limbo and propping up demand for bullion. A 0.13% decline in the dollar index to 97.58 further aided affordability for international purchasers.
Geopolitical flashpoints are intensifying safe-haven flows. The upcoming US-Iran nuclear discussions in Geneva and Middle East military maneuvers underscore gold’s enduring appeal.
Fundamentally, precious metals outlook is robust. Comex gold oscillates in the $5,100-$5,300 band post-fluctuations. Silver could target $100-105 if it holds above $92-96 on Comex.
Key MCX supports for gold: ₹1,60,000/₹1,57,700; resistances: ₹1,62,500/₹1,64,000. Silver supports: ₹2,63,600/₹2,58,800; resistances: ₹2,74,000/₹2,80,000.
Experts predict choppy trading ahead, recommending profit realization on upticks and strategic accumulation on corrections. In an era of trade wars and regional strife, these metals’ allure persists.
