Gold and silver prices dropped on Friday in both MCX and global markets as the US dollar gained strength following lower-than-expected weekly jobless claims. The softer stance of US President Donald Trump on Iran also reduced the demand for these precious metals.
In morning trade, MCX gold February futures slipped by 0.26% to Rs 1,42,743 per 10 grams, while MCX silver March futures decreased by 0.94% to Rs 2,88,824 per kg. Spot gold saw a decline of about 0.29% to $4,602.43 an ounce, despite being up by around 2% for the week. Spot silver also fell by approximately 0.8% to $91.69 an ounce after hitting an all-time high of about $93.57-$93.70 during the session.
Analysts noted that the retreat was due to the dollar index rising towards 99.49, reaching its highest level since early December. Geopolitical tensions from Iran unrest and issues involving Venezuela and Greenland are still supporting the demand for these metals.
Expectations are for gold and silver prices to remain volatile this week due to fluctuations in the dollar index, especially ahead of the US Supreme Court’s decision on tariffs. The Augmont Bullion report mentioned that silver dropped significantly from its peak of $93 after Trump opted not to impose new tariffs on crucial mineral imports. Instead, he emphasized keeping negotiations open with foreign nations to secure supplies and reduce supply-chain risks swiftly, considering import restrictions only if talks fail to produce timely outcomes.
Traders might witness some profit-booking and retracement before prices resume an upward trend. Investors are closely watching the US Federal Reserve for potential easing measures amid global uncertainties. The softer-than-expected November producer inflation, both headline and core, coupled with mild December consumer inflation data, have raised hopes of multiple rate cuts by the US Fed later this year.
