In a classic case of profit booking amid a resurgent dollar, gold and silver prices edged lower on MCX Tuesday. While the dip appears technical, ongoing global uncertainties are keeping these safe-haven assets relevant for medium-term investors.
Gold for February delivery declined 0.33% to ₹1,57,550 per 10 grams, reflecting cautious trading. Silver March futures tumbled 1.92% to ₹2,57,567 per kg after an initial plunge beyond 2% to ₹2,57,100. Gold also hit an intraday low of ₹1,56,001, down 1.3%, before stabilizing somewhat.
A firmer dollar index at 97.01 pressured prices, as it raises the cost for non-US buyers. Expectations of Fed rate cuts—potentially twice by 25 bps—could reverse this trend, making precious metals more attractive.
Geopolitical risks, including US-Iran frictions and advisories for ships to steer clear of Iranian seas, underpin the metals’ appeal. Comex gold maintains a long-term bullish bias, with experts dismissing the pullback as healthy consolidation.
Silver’s Comex trading in the $65-70 band signals strong support. MCX gold finds footing at ₹1,56,600/₹1,54,800, facing hurdles at ₹1,59,100/₹1,60,000. Silver supports at ₹2,55,500/₹2,48,800, with resistance at ₹2,68,000/₹2,74,000.
Long-term drivers for silver include industrial usage and tight supplies, while gold benefits from central bank hoarding and haven demand. Eyes are on upcoming US jobs data and CPI figures, pivotal for Fed rate decisions.