New Delhi, March 11 Gold and silver prices eased on Wednesday as investors booked profits, though a softer US dollar and lingering geopolitical uncertainty capped the decline.
MCX gold April futures lost 0.52 per cent to Rs 1,62,452 per 10 grams around 11.15 am on an intraday basis. Meanwhile, MCX silver May futures declined 1.69 per cent to Rs 2,73,150 per kg.
The profit booking followed the MCX gold April futures contract rising almost 2 per cent and the silver May futures surging 4 per cent in the previous session.
The US dollar weakened 0.07 per cent on an intraday basis to 98.75 cent, making dollar‑priced bullion cheaper for holders of other currencies.
Meanwhile, crude oil fell below $90 a barrel, cooling off inflation concerns of traders that had earlier bolstered demand for gold as an inflation hedge.
Brent crude oil price fell 0.99 per cent to $86.93 a barrel, while US West Texas Intermediate (WTI) futures dropped 0.75 per cent to $82.82.
Overnight, both futures had settled down more than 11 per cent, marking the steepest single‑day decline in four years after the International Energy Agency proposed the largest release of emergency reserves in its history.
Investors booked profits amid uncertainty over the trajectory of the war after confusing signals from US President Donald Trump, who earlier suggested war could be nearing its end, followed by US and Israel subjecting Iran to an intense air strike overnight.
Investors remain keen on cues from the Personal Consumption Expenditures index, due on Friday to gauge US inflation and chances of Fed rate cuts.
The medium to long-term outlook of COMEX Silver remains constructive despite short-term volatility, a market participant said.
"MCX Gold has support at Rs 1,61,800 to Rs 1,60,350 zone while resistance at Rs 1,64,400 and Rs 1,66,600 levels. MCX silver has support at Rs 2,744,000 and Rs 2,68,000, and resistance is at Rs 2,81,000 and Rs 2,85,500," an analyst said.
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