MUMBAI– Gold prices edged lower on Thursday after two days of gains, while silver prices saw a sharp sell-off, falling more than 8 percent amid heightened volatility in precious metals markets.
MCX gold February futures declined 0.98 percent to Rs 1,51,552 per 10 grams in intraday trade around 10:25 a.m. MCX silver March futures plunged 8.39 percent to Rs 2,46,283 per kg.
Both metals had climbed roughly 6 percent in early morning trade but failed to hold on to those gains, analysts said.
Market participants said the recent weakness in gold and silver earlier this week was initially cushioned as investors absorbed the nomination of Kevin Warsh as the new chairman of the U.S. Federal Reserve.
Despite ongoing diplomatic talks between the U.S. and Iran, safe-haven demand has remained intact following heightened geopolitical tensions after U.S. forces shot down an Iranian drone. Iran and the United States are scheduled to hold talks on Friday. Additional support for prices earlier in the week came from a partial U.S. government shutdown and profit-taking in the dollar index from recent highs.
Analysts said the broader uptrend in COMEX gold remains intact, with the latest pullback largely reflecting profit-booking and healthy price consolidation. Prices are currently trading below key moving averages, pointing to short-term corrective pressure rather than a reversal of the longer-term trend.
Strong support for MCX gold futures is seen in the Rs 1,45,000 to Rs 1,48,000 range, while resistance is placed between Rs 1,65,000 and Rs 1,75,000.
Silver’s medium- to long-term outlook remains constructive, supported by steady industrial demand and ongoing structural supply constraints, despite elevated price volatility. Analysts see support for silver in the Rs 2,35,000 to Rs 2,50,000 zone, with resistance in the Rs 3,00,000 to Rs 3,25,000 range.
Structural supply deficits, persistent safe-haven demand, continued central bank accumulation, and expectations of accommodative global monetary conditions continue to underpin longer-term prospects for both metals, according to market observers. (Source: IANS)
