New Delhi, Feb 10 Gold and silver prices dipped moderately on Tuesday due to a stronger dollar and profit booking, even as geopolitical uncertainties extended medium-term support to precious metals.
MCX gold February futures dipped 0.33 per cent to Rs 1,57,550 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures declined 1.92 per cent to Rs 2,57,567 per kg.
Earlier, silver prices dipped over 2 per cent to its day's low of Rs 2,57,100 per kg and gold prices dipped 1.3 per cent to Rs 1,56,001 per 10 grams, before the precious metals rebounded slightly.
The dollar index rose to 97.01 on Tuesday from 96.82 in the previous session, making greenback-backed bullion slightly expensive for overseas buyers.
Markets are currently pricing in at least two rate cuts of 25 basis points this year, generally positive for bullion due to expectations of a more relaxed monetary policy. Despite indications of diplomatic progress, tensions between the US and Iran remain high, as Washington cautioned US-flagged ships to avoid Iranian seas.
The broader uptrend on COMEX Gold remains intact, with the recent pullback reflecting profit booking and healthy price digestion, market participants said.
Strong buying interest is visible in the $65–$70 support band for COMEX Silver, aligned with prior swing lows and long-term trend support, they added.
“Gold has support at Rs 1,56,600 and Rs 1,54,800 zones while resistance at Rs 1,59,100 and Rs 1,60,000. Silver has support at Rs 2,55,500 and Rs 2,48,800 levels while resistance at Rs 2,68,000 and Rs 2,74,000," an analyst said.
Market watchers said that structural supply deficits and steady industrial demand continue to underpin the bullish bias in silver while persistent safe-haven demand, steady central-bank accumulation, continue to underpin gold's long term outlook.
Investors remain keen on cues from the non-farm payrolls report for January, and inflation data, later this week, for more cues on the US Fed's interest rate trajectory.
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