Editor’s Note
Precious metals saw a slight pullback in Thursday’s trading, with both gold and silver futures edging lower on the MCX. The primary driver cited for the dip was a firmer US dollar.
Gold and silver prices experienced a moderate decline on Thursday, driven by a strengthening US dollar.
On the Multi Commodity Exchange (MCX), April gold futures dipped 0.24 percent to Rs 1,58,371 per 10 grams on an intra-day basis. Meanwhile, March silver futures declined 0.72 percent to Rs 2,61,124 per kilogram.
The dollar index surged to 96.94 on Thursday from 96.83 in the previous session. This gain was attributed to robust US jobs data, which signaled underlying economic health. A stronger dollar makes dollar-priced bullion more expensive for holders of other currencies.
Analysts noted that US job growth unexpectedly accelerated in January, with the unemployment rate falling to 4.3 percent. These signs of labor market stability could provide the Federal Reserve room to maintain interest rates unchanged for some time as policymakers monitor inflation.
Earlier, in international commodity markets, gold and silver prices had inched up amidst rising geopolitical uncertainties. This followed talks between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, where Trump informed that a “definitive” agreement was not reached on how to proceed with Iran, though negotiations with Tehran would continue.
COMEX Gold traded within the $5,000–$5,150 band after a sharp correction from highs near $5,500–$5,600. Market participants indicated that the broader uptrend remains intact, and the recent pullback appears to be healthy profit-taking rather than structural weakness.
COMEX Silver is currently trading in the $80–$87 zone after a steep correction from record highs above $121. Analysts said the medium to long-term outlook remains constructive, supported by structural supply constraints and steady industrial demand, though volatility remains elevated.
Investors remain keen on upcoming US inflation data, due on Friday, for more monetary policy cues, as well as on UK GDP data.