New Delhi. After the recent rise in the prices of gold and silver, a slight coolness is now being seen in the market. Both precious metals were traded in a limited range on the Indian futures market Multi Commodity Exchange of India (MCX) on Thursday. After the strong rally in the last few sessions, investors started booking profits at higher levels, due to which a slight decline was recorded in the prices.
Latest prices and market movements
On MCX, gold April futures slipped by about 0.25 percent and were seen trading at around ₹ 1,60,741 per 10 grams. On the other hand, there was relatively more weakness in silver March futures and it fell by about 1.16 percent to around ₹ 2,65,200 per kg. It is noteworthy that in the previous session, there was a strong rise in both gold and silver, after which profit booking was naturally seen in the market.
Why was the decline limited?
Although the prices have softened, a major fall seems to be averted for now. There are many global reasons working behind this:
1. Weakness in dollar
Gold and silver have got support due to slight decline in dollar index. When the dollar weakens, precious metals become relatively cheaper for those purchasing in other currencies, which maintains demand.
2. Business uncertainty
There is confusion in the market regarding the tariff policies of US President Donald Trump. Potential import duty hikes could impact global trade, forcing investors to turn to safer investment options. In such an environment, gold is considered a traditional safe asset.
3. Geopolitical tensions
Increasing tensions between the US and Iran and military activities in the Middle East have increased market concerns. Investors are also keeping an eye on the proposed nuclear talks in Geneva on February 27. If the situation worsens, the demand for gold and silver may become stronger.
Key levels on MCX:
Sleep: Support at ₹1,60,000 and ₹1,57,700; Resistance at ₹1,62,500 and ₹1,64,000.
Silver: Support at ₹2,63,600 and ₹2,58,800; Resistance at ₹2,74,000 and ₹2,80,000.
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