Editor’s Note
This article highlights the recent volatility in precious metals, driven by a complex mix of global market signals, dollar strength, interest rate expectations, and supply-demand dynamics. The reported decline on the MCX underscores the immediate impact of these factors on domestic trading.
The precious metals market witnessed sharp fluctuations again today. The impact of domestic and international market signals, the strength of the US dollar, expectations of changes in interest rates, and the balance of demand and supply directly affected the prices of gold and silver. A decline was recorded in the prices of both metals on the Multi Commodity Exchange (MCX).
Today, the price of gold fell by 1000 rupees to 1,53,753 rupees per 10 grams. In recent days, MCX has seen both sharp rallies and declines in gold, creating volatility in the market.
On Tuesday, gold prices also fell by about 1 percent. A major reason cited for this is the holiday in major Asian markets due to the Lunar New Year. Trading remained weak and trading volume was low due to holidays in countries like China. Additionally, a strong US dollar also put pressure on gold prices.
In the international market, spot gold fell 0.9 percent to $4,947.98 per ounce, while US gold futures for April delivery fell 1.6 percent to $4,966.80 per ounce.
Today on COMEX, gold also broke 1.51 percent to $4,970.80 per ounce.
Along with gold, a significant decline was also seen in silver. On MCX, the silver rate slipped by 4000 rupees to 2,35,773 rupees per kilogram.
Pressure also remains on silver in the international market. On COMEX, silver fell 3.80 percent to $75.00 per ounce. Silver prices typically see more volatility because they are affected by both investment and industrial demand.
Currently, profit-booking pressure persists on gold and silver prices. The market’s focus is on the US Personal Consumption Expenditure (PCE) data and the proceedings of the Federal Open Market Committee (FOMC) meeting.
