MUMBAI– Gold and silver prices edged lower on Tuesday as a stronger U.S. dollar and profit-taking weighed on bullion after sharp gains in the previous session, even as geopolitical uncertainty helped limit deeper losses.
On the Multi Commodity Exchange, gold futures for April delivery slipped 0.58 percent to Rs 1,60,664 per 10 grams in intraday trade around 10:50 a.m. Silver futures for March delivery declined 0.33 percent to Rs 2,64,450 per kilogram.
In international markets, Comex gold futures for April fell 1.1 percent to $5,170.70 an ounce, while spot gold dropped 1.5 percent to $5,150.38, retreating from a three-week high touched earlier in the day. Spot silver slid 3.1 percent to $85.50 an ounce after reaching a two-week high in the previous session.
The pullback came as the dollar index strengthened sharply, rising 10.19 percent intraday to 97.89, making precious metals more expensive for holders of other currencies and prompting short-term selling.
Analysts said investors are also factoring in uncertainty surrounding tariffs following a Supreme Court ruling against President Donald Trump’s emergency tariff measures. While the ruling created near-term volatility, analysts noted that ongoing trade tensions could continue to support gold’s role as a hedge against geopolitical risk. Trump has warned that countries backing away from trade deals could face higher tariffs.
Additional support for gold prices has come from heightened geopolitical tensions, with markets closely watching the approach of the U.S. president’s 10-day deadline for a “meaningful deal” with Iran.
In Asia, China’s precious metals futures market reopened after the Lunar New Year holiday, improving global liquidity conditions. Silver, in particular, has been trading at a strong premium to Western spot prices, reflecting tight local supply and firm industrial demand, analysts said.
Despite near-term volatility, the medium- to long-term outlook for precious metals remains constructive, supported by steady industrial demand and structural supply constraints.
Technical analysts said gold has support levels at Rs 1,60,600 and Rs 1,58,800, with resistance seen at Rs 1,63,300 and Rs 1,65,000. For silver, support is placed at Rs 2,61,000 and Rs 2,56,600, while resistance levels are seen at Rs 2,70,000 and Rs 2,78,000. (Source: IANS)
