Editor’s Note
Domestic gold and silver prices fell on Thursday, February 12, mirroring a downturn in global markets and pressured by a stronger rupee.
Gold and silver prices in the domestic market declined on Thursday (February 12), tracking weakness in international markets. A firmer Indian rupee further weighed on precious metal prices.
As of 10:00 am, gold prices were down 0.5 per cent, falling Rs 846 to trade at Rs 1,57,909. Silver prices slipped 1.3 per cent, declining Rs 3,510 to Rs 2,59,508. In the previous session, MCX silver futures settled marginally higher by 0.1 per cent, or Rs 317, at Rs 2,62,701 per kg, while MCX gold futures settled slightly lower at Rs 1,58,650 per 10 grams.
In the international market, spot gold dropped 0.5 per cent to USD 5,059.72, while spot silver fell 0.9 per cent, or USD 0.70, to USD 83.57.
The US dollar index was up 0.1 per cent at 96.89 against a basket of major currencies. A stronger dollar typically weighs on gold prices because gold is dollar-denominated, making it more expensive for foreign buyers and less attractive compared to yield-bearing US assets.
While rupee appreciated against the US dollar in early trade on Thursday.
Limiting further downside, geopolitical tensions remain in focus. Ahead of Israeli Prime Minister Benjamin Netanyahu’s visit to the US, Iran warned that his influence could be “destructive” for future talks between the two nations.
Geopolitical uncertainty generally boosts gold as a safe-haven asset, increasing demand during periods of global instability.
Investors across the globe are closely monitoring the US initial jobless claims data and the upcoming US CPI inflation data due on Friday.
The Consumer Price Index (CPI) measures the average change over time in the prices consumers pay for goods and services and serves as a key indicator of inflation. CPI data is crucial for gold and silver prices because it influences interest rate expectations and the strength of the US dollar, both of which directly impact bullion markets.
Manav Modi of Motilal Oswal told ET Now Swadesh.
Analyst Amit Khade added.
The gold rate in Chennai is currently the highest among major cities at Rs 1,61,360 per 10 grams, while gold price in Mumbai and Kolkata stands at Rs 1,59,610 per 10 grams.