Mumbai, Feb 24 Gold and silver prices retreated on Tuesday, amid uptick in US dollar and profit‑taking after huge gains in previous session.
Investors weighed in tariff uncertainty and ongoing US-Iran peace talks which capped the decline in prices.
MCX gold April futures dipped 0.58 per cent to Rs 1,60,664 per 10 grams around 10.50 am on an intraday basis. Meanwhile MCX silver March futures declined 0.33 per cent to Rs 2,64,450 per kg.
On Comex, gold futures for April delivery fell 1.1 per cent to $5,170.70 an ounce, while spot gold dropped 1.5 per cent to $5,150.38, retreating from a three‑week high earlier in the day. Spot silver plunged 3.1 per cent to $85.50 per ounce, after hitting a two‑week high in the previous session.
The dollar index surged 10.19 per cent on an intra-day basis to 97.89 making bullion more expensive for holders of other currencies.
Tariff-related uncertainty after the Supreme Court’s ruling against US President Donald Trump’s emergency tariffs will drive gold’s appeal as a hedge against geopolitical risks, analysts said. President Trump has warned countries against backing away from trade deals, saying such action will invite higher tariffs.
Analysts also said that heightened geopolitical tensions due to US President Donald Trump's 10-day deadline for a "meaningful deal” with Iran drawing closer provides near term support to gold prices.
In China, the precious metals futures market reopened after the Lunar New Year holiday boosting the global liquidity conditions. Silver traded at a strong premium to Western spot prices, reflecting tight local supply and robust industrial demand, analysts noted.
Medium and long-term outlook remains constructive, supported by industrial demand and structural supply constraints despite volatility, they added.
"Gold has support at Rs 1,60,600 and Rs 1,58,800 while resistance at Rs 1,63,300 and Rs 1,65,000. MCX silver has support at Rs 2,61,000 and Rs 2,56,600, and resistance is at Rs 2,70,000 and Rs 2,78,000," an analyst said.
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