Editor’s Note
This article discusses recent fluctuations in gold and silver prices, attributing the decline to a stronger US dollar, US economic data, and shifting geopolitical sentiment.
Gold and silver prices continue to fluctuate. On Friday, after the markets opened, a decline in the prices of gold and silver was observed in the domestic futures market (MCX) and earlier in global markets as well. The main reasons for this were the strengthening of the US dollar and weaker-than-expected ‘jobless claims’ data in the US. Additionally, US President Donald Trump’s softer stance on Iran also reduced demand for these precious metals, as the need for them as a safe-haven investment diminished.
Silver fell by approximately ₹2,741 from a price of ₹2,91,565 to reach ₹2,88,824.
Meanwhile, gold fell by ₹372 from ₹1,43,115 per 10 grams to reach ₹1,42,743 per 10 grams.
MCX Gold: February futures fell 0.26% to ₹1,42,743 per 10 grams.
MCX Silver: March futures fell 0.94% to ₹2,88,824 per kilogram.
In the international market, spot gold fell 0.29% to $4,602.43 per ounce, while silver fell about 0.8% to $91.69.
Surge in Dollar Index: The Dollar Index rose to a level of 99.49, its strongest level since early December.
Profit Booking: Silver recently touched its all-time high of $93.57, after which investors engaged in profit booking.
Experts believe that volatility will persist in the market this week. Investors are now focused on the US Supreme Court’s decision regarding tariffs and signals from the US Federal Reserve. If inflation figures remain low, the Federal Reserve could cut interest rates by the end of this year, which could provide renewed support to prices.