Gold prices saw a moderate decline on Thursday following a two-day surge, while silver experienced a significant drop of over 8%. MCX gold February futures fell by 0.98% to Rs 1,51,552 per 10 grams around 10.25 am on an intraday basis. In contrast, MCX silver March futures plummeted by 8.39% to Rs 2,46,283 per kg.
Gold and silver prices had initially risen by around 6% in early morning trade but were unable to maintain those levels. Analysts attributed the fall in gold and silver earlier in the week to the nomination of Kevin Warsh as the new Fed Chairman, which the markets largely absorbed.
Despite diplomatic discussions between the US and Iran, safe-haven buying persisted due to escalating tensions following the downing of an Iranian drone by US forces. Talks between Iran and the United States are scheduled for Friday. The support for the rally on Wednesday also stemmed from a partial US government shutdown and profit-taking in the dollar index from its peak.
Market watchers noted that the broader uptrend on COMEX Gold remains intact, with the pullback indicating profit booking and healthy price digestion. Prices are currently trading below key moving averages, signaling short-term downward pressure and a corrective phase rather than a reversal of the broader trend.
Strong support levels are identified in the Rs 1,45,000 to Rs 1,48,000 range for MCX gold futures, while resistance is concentrated around the Rs 1,65,000 to Rs 1,75,000 range. The medium- to long-term outlook for silver remains positive due to steady industrial demand and structural supply constraints, despite heightened volatility.
Analysts highlighted that silver has a support band at Rs 2,35,000 to Rs 2,50,000, with resistance observed in the Rs 3,00,000-Rs 3,25,000 range. The bullish bias in silver is underpinned by structural supply deficits, consistent industrial demand, persistent safe-haven buying, steady central-bank accumulation, and expectations of accommodative global monetary conditions, as per a recent report.
