Editor’s Note
This article provides a snapshot of recent volatility in the commodity markets, highlighting the rapid shifts in precious metal prices driven by factors like currency movements.
The commodity market has witnessed significant fluctuations over the past few days. After a sharp decline on Tuesday, precious metals saw a strong rally during Wednesday’s trading session. However, Thursday’s session saw a slight decline in gold and silver prices, primarily attributed to the strengthening US dollar.
On the Multi Commodity Exchange (MCX), gold for April delivery fell to a daily low of ₹157,701 per 10 grams. Similarly, silver for March delivery also dropped to a daily low of ₹258,730 per kilogram.
At the time of writing (around 11:51 AM), gold expiring on April 2 on MCX was trading at ₹158,377 per 10 grams, down about 0.24% or ₹378. Meanwhile, silver expiring on March 5 was trading at ₹262,003 per kilogram, down 0.39% or ₹1,015.
In early trading, the dollar index rose from 96.83 to 96.94. The dollar gained strength due to robust employment data from the United States. When the dollar strengthens, precious metals like gold and silver become more expensive for other countries, which can reduce their demand.
Experts noted that job growth in the US in January exceeded expectations, and the unemployment rate fell to 4.3%, indicating a strong labor market. This suggests the US central bank (Fed) may keep interest rates unchanged for some time.
Previously, gold and silver prices had surged due to rising geopolitical tensions in the international market. Following talks between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, it became clear that no ‘decisive’ agreement was reached on the Iran issue. However, they stated that talks with Tehran would continue.
According to analysts, gold may find support around the ₹156,000 level, while resistance is seen around ₹160,500. On COMEX, gold is trading in the range of $5000 to $5150. It had previously fallen from higher levels of $5500 to $5600.
Market experts say the long-term trend for gold remains positive, and the recent decline could be due to profit-taking.
On COMEX, silver is trading in the range of $80 to $87, having previously retreated from record highs above $121. Experts believe demand for silver will persist in the future, but price volatility may continue.
Investors are now keeping an eye on upcoming US inflation data and UK GDP figures due on Friday, as these could determine the market’s direction.