Editor’s Note
This article highlights the recent dip in gold and silver prices, driven by profit-taking and a stronger dollar. However, underlying geopolitical tensions continue to provide support, limiting the downside.
Gold and silver prices fell in international markets on Tuesday due to profit-taking and a strengthening US dollar. Following a strong rally in the previous session, investors began securing profits, pulling down the prices of precious metals. Traders also monitored uncertainty surrounding import duties and ongoing peace talks between the US and Iran. These factors limited the extent of the price decline, as geopolitical risks have not fully subsided.
On the Multi Commodity Exchange, April gold futures were trading at ₹160,664 per 10 grams, down 0.58%. Meanwhile, March silver futures slipped 0.33% to ₹264,450 per kilogram. Pressure was also seen in international markets. April delivery gold futures fell 1.1% to $5,170.70 per ounce. Spot gold dropped 1.5% to $5,150.38 per ounce, having started the day at a three-week high. Spot silver tumbled 3.1% to $85.50 per ounce, after reaching a two-week high in the previous session.
The dollar index surged sharply by 10.19% to reach 97.89. A stronger US dollar makes gold and silver more expensive for holders of other currencies, impacting demand. Analysts say confusion persists over trade policy following the US Supreme Court’s decision against President Donald Trump’s emergency tariffs.
Additionally, tensions have risen as the 10-day deadline for a “meaningful agreement” with Iran approaches. This could provide short-term support for gold as a safe-haven investment. Global liquidity conditions have strengthened following the reopening of precious metal futures markets after the Lunar New Year holiday in China. Silver is trading at a premium compared to Western spot prices, indicating tight local supply and robust industrial demand. Experts believe that medium to long-term industrial demand and structural supply constraints will continue to support gold and silver, even if short-term volatility persists.
Technically, support for gold is seen at ₹160,600 and ₹158,800, while resistance is at ₹163,300 and ₹165,000. For silver, support levels are at ₹261,000 and ₹256,600, with resistance at ₹270,000 and ₹278,000. According to the stock market update, investors in the domestic bullion market are currently focused on the dollar’s movement, global tensions, and upcoming economic indicators. The direction of the Nifty and Sensex amid broader market fluctuations could also influence investment sentiment.