Gold and silver prices saw a decline on Tuesday due to a rise in the US dollar and profit-taking following significant gains in the previous session. Concerns over tariffs and the ongoing US-Iran peace talks influenced the market, limiting the drop in prices.
MCX gold April futures fell by 0.58% to Rs 1,60,664 per 10 grams by 10.50 am intraday, while MCX silver March futures dropped 0.33% to Rs 2,64,450 per kg. On Comex, gold futures for April delivery decreased by 1.1% to $5,170.70 an ounce, with spot gold also declining by 1.5% to $5,150.38, retracting from a three-week high. Spot silver experienced a 3.1% drop to $85.50 per ounce after reaching a two-week high in the previous session.
The dollar index rose by 10.19% to 97.89 intraday, making gold more expensive for holders of other currencies. Analysts pointed out that tariff-related uncertainties, following the Supreme Court’s ruling against US President Donald Trump’s emergency tariffs, are enhancing gold’s appeal as a hedge against geopolitical risks. President Trump’s warnings against countries deviating from trade deals could lead to higher tariffs, further supporting gold prices.
Analysts also highlighted that escalating geopolitical tensions, as President Trump’s 10-day deadline for a “meaningful deal” with Iran approaches, are providing short-term backing to gold prices. In China, the precious metals futures market resumed trading after the Lunar New Year holiday, contributing to global liquidity conditions. Silver traded at a premium to Western spot prices, reflecting strong local demand and limited supply.
The medium and long-term outlook for gold remains positive, supported by industrial demand and supply constraints despite market volatility. Analysts mentioned key support levels for gold at Rs 1,60,600 and Rs 1,58,800, with resistance at Rs 1,63,300 and Rs 1,65,000. For MCX silver, support levels are at Rs 2,61,000 and Rs 2,56,600, while resistance is at Rs 2,70,000 and Rs 2,78,000.
