Gold and silver prices saw a moderate decline on Thursday, influenced by a stronger US dollar. The MCX gold April futures dropped by 0.24% to Rs 1,58,371 per 10 grams during the day, while MCX silver March futures fell by 0.72% to Rs 2,61,124 per kg. The dollar index rose to 96.94 from 96.83, driven by robust US jobs data indicating a stable economy.
Analysts noted that US job growth picked up unexpectedly in January, with the unemployment rate decreasing to 4.3%. This stability in the labor market may allow the Fed to maintain interest rates unchanged for a while, keeping an eye on inflation. Manav Modi, a commodities analyst at Motilal Oswal Financial Services Ltd., highlighted that the recent payroll increase might overstate the labor market’s health.
In the international commodity markets, gold and silver prices had slightly risen amid growing geopolitical uncertainties. Following discussions with Israeli Prime Minister Benjamin Netanyahu, US President Donald Trump mentioned the absence of a definitive agreement on Iran’s future. However, negotiations with Tehran are set to continue. Analysts pointed out that while COMEX Gold traded within a specific range, the broader uptrend remained strong, with the recent pullback attributed to profit booking rather than fundamental weakness.
COMEX Silver, on the other hand, is trading within a certain zone after a significant correction from previous highs. The outlook for silver remains positive in the medium to long term, supported by supply constraints and steady industrial demand. Investors are closely watching US inflation data and UK GDP figures for insights into future monetary policies.
