Gold rate declined in the domestic futures market on Tuesday, February 24, morning, amid some profit booking after strong gains in the previous session. An uptick in the US dollar and weak spot demand prompted investors to take some profits on the MCX. However, US tariff-related uncertainties and US-Iran tensions limited losses for precious metals.
MCX gold April futures dropped by nearly ₹1,000, or 0.60%, to ₹1,60,615 per 10 grams. MCX silver April futures slipped by more than ₹1,000, or 0.40%, to ₹2,64,327 per kg.
In the previous session, the MCX gold April futures contract jumped 3%, closing at ₹1,61,598 per 10 grams, while the MCX silver March futures contract settled at ₹2,65,333 per kilogram, jumping 5%.
International gold prices also dropped to a three-week low, pressured by a stronger dollar. US gold futures for April delivery fell by more than 1% to $5,170.70. In the previous session, gold prices crossed $5,200 per troy ounce, while silver prices crossed $86 per troy ounce.
The dollar index climbed by nearly 0.20% to 97.88, weighing on gold demand by overseas buyers.
Investors are closely observing the evolving situation between the US and Iran. According to reports, Washington and Tehran are expected to hold their next round of nuclear talks on 26 February.
Meanwhile, the Trump administration is reportedly planning to use Section 232 of the Trade Expansion Act of 1962 to replace the global tariffs struck down by the Supreme Court of the United States last week.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index, US-Iran tensions and reopening of Chinese markets after a week-long holiday.
“We are experiencing very high price volatility in both precious metals. Silver prices could hold their support level of $68 per troy ounce, and gold prices could also hold their support level of $4,880 per troy ounce on a closing basis this week. Chinese markets are re-opening today after long festival holidays and could also support prices of both precious metals,” said Jain.
Jain said gold has support at $5,164 and $5,122, while resistance is at $5,270 and $5,330 per troy ounce, and silver has support at $84 and $81.80, while resistance is at $88 and $92 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,60,600 and ₹1,58,800 and resistance is at ₹1,63,300 and ₹1,65,000, while silver has support at ₹2,61,000 and ₹2,56,600 and resistance is at ₹2,70,000 and ₹2,78,000.
“We suggest buying gold on dips around ₹1,60,000 and ₹1,59,100 with a stop loss below ₹1,57,700 for the target of ₹1,63,300 and ₹1,65,000, and buying silver around ₹2,60,000 and ₹2,55,500 with a stop loss below ₹2,51,000 for the target of ₹2,70,000 and ₹2,74,000,” said Jain.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold April futures to drop to ₹1,59,000 per 10 grams as prices are trading with weak momentum in the world markets, while MCX silver March prices may drop to ₹2,61,000 per kg during the intraday today.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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