Gold and silver prices experienced a moderate decline on Tuesday, influenced by a stronger dollar and profit booking. MCX gold February futures dropped by 0.33% to Rs 1,57,550 per 10 grams, while MCX silver March futures saw a decline of 1.92% to Rs 2,57,567 per kg.
Silver prices initially fell over 2% to Rs 2,57,100 per kg, and gold prices decreased by 1.3% to Rs 1,56,001 per 10 grams before both metals slightly rebounded. The dollar index rose to 97.01 from 96.82, making gold and silver relatively more expensive for international buyers.
Market expectations of two rate cuts of 25 basis points this year are generally positive for bullion due to a potentially more relaxed monetary policy. Despite some diplomatic progress, tensions between the US and Iran persist, with Washington advising US-flagged ships to steer clear of Iranian waters.
The broader uptrend on COMEX Gold remains intact, with the recent pullback attributed to profit booking and healthy price adjustments, according to market participants. Strong buying interest is observed in the $65–$70 support range for COMEX Silver, in line with previous swing lows and long-term trend support levels.
An analyst noted that gold has support at Rs 1,56,600 and Rs 1,54,800, with resistance at Rs 1,59,100 and Rs 1,60,000. For silver, support levels are at Rs 2,55,500 and Rs 2,48,800, while resistance is at Rs 2,68,000 and Rs 2,74,000.
Market observers highlighted structural supply deficits and consistent industrial demand as factors supporting a bullish bias in silver. Meanwhile, ongoing safe-haven demand and steady central-bank accumulation continue to bolster the long-term outlook for gold. Investors are closely monitoring cues from the upcoming non-farm payrolls report for January and inflation data later this week to gauge the US Fed’s interest rate trajectory.
