Gold and silver prices saw a decline on Thursday as investors engaged in profit booking, despite geopolitical tensions and a weakened US dollar limiting the drop. MCX gold April futures slipped by 0.25% to Rs 1,60,741 per 10 grams intraday, while MCX silver March futures fell by 1.16% to Rs 2,65,200 per kg. The previous session had witnessed a 0.74% gain in the MCX April gold contract and a 3% increase in the March silver contract, leading to profit booking activities.
The US dollar’s ongoing decline, influenced by trade uncertainties and varying perspectives on tariffs from the US Supreme Court and President Donald Trump, has contributed to the situation. Trump’s emphasis on tariffs as a key part of his trade strategy has led to uncertainties, with the US imposing 10% tariffs on specific imports, potentially rising to 15% or higher for certain countries. This uncertainty surrounding US tariffs and trade negotiations has supported the prices of precious metals.
The dollar index dropped by 0.13% to 97.58, making gold more affordable for buyers using foreign currencies. Analysts highlighted the US-Iran scenario, with upcoming nuclear talks and increased US military presence in the Middle East, driving safe-haven demand. The medium-to-long-term outlook for precious metals remains positive, with COMEX Gold trading within a consolidation band of $5,100–$5,300 post recent volatility.
Market participants noted that a sustained recovery in COMEX silver above $92–$96 could lead to momentum towards $100–$105, potentially retesting previous highs. Analysts provided support and resistance levels for gold and silver, suggesting potential price movements. They forecasted volatility in gold and silver prices during the week, advising investors to capitalize on profits at higher levels and wait for corrective dips to enter new long positions.
