NEW DELHI– Gold and silver prices fell for a second straight session on Tuesday as investors weighed mixed U.S. economic data and awaited clearer signals on the Federal Reserve’s future policy direction.
MCX gold April futures declined 0.56 percent intraday to Rs 1,53,889 per 10 grams, while MCX silver March futures dropped 1.18 percent to Rs 2,37,064 per kilogram.
Analysts said market participants remain divided on whether softer inflation data will eventually lead to easier monetary policy or whether continued strength in the U.S. labor market will keep interest rates elevated for longer.
The dollar index rose 0.21 percent to 97.12, tracking moderation in U.S. consumer price inflation in January. A stronger dollar increased the cost of dollar-denominated bullion for holders of other currencies, weighing on prices.
In international markets, spot gold slipped below the $5,000 level to around $4,992 an ounce, while spot silver fell nearly 3 percent. Prices eased after U.S. consumer inflation came in below expectations even as job growth exceeded forecasts, complicating expectations for near-term rate cuts.
Analysts said COMEX gold is currently trading in a $4,850–$5,100 range following a sharp correction from recent highs above $5,500–$5,600.
Easing geopolitical tensions also reduced safe-haven demand after comments from an Iranian diplomat indicating that Iran is seeking a nuclear agreement with the United States that could deliver economic benefits for both sides.
“Gold has support at Rs 1,45,000 and Rs 1,50,000, while resistance is seen at Rs 1,60,800 and Rs 1,65,000. MCX silver has support at Rs 2,25,000 and Rs 2,60,000, with resistance at Rs 3,00,000 and Rs 3,25,000,” an analyst said.
Despite the recent pullback, analysts said the broader outlook for precious metals remains constructive, supported by ongoing geopolitical risks, strong central bank buying, and investor movement away from sovereign bonds and currencies.
Market participants are closely watching global liquidity conditions, movements in the U.S. dollar and bond yields, developments in U.S.-Iran talks, and negotiations aimed at ending the Russia-Ukraine war for further direction. (Source: IANS)
