Gold, Silver Prices Fall on Profit Booking Despite Geopolitical Uncertainty
NEW DELHI — Gold and silver prices declined on Wednesday as investors booked profits following recent gains, although a weaker U.S. dollar and continuing geopolitical tensions helped limit the overall drop.
On the Multi Commodity Exchange (MCX), gold April futures slipped 0.52% to Rs 1,62,452 per 10 grams around 11:15 a.m. during intraday trading. Silver May futures fell 1.69% to Rs 2,73,150 per kilogram.
The pullback came after strong gains in the previous session, when the MCX gold April contract climbed nearly 2% and silver May futures surged about 4%.
The U.S. dollar weakened slightly, falling 0.07% intraday to 98.75, making dollar-denominated bullion cheaper for holders of other currencies.
Crude oil prices also moved lower, easing some inflation concerns that had previously supported demand for gold as an inflation hedge.
Brent crude dropped 0.99% to $86.93 per barrel, while U.S. West Texas Intermediate futures declined 0.75% to $82.82 per barrel.
Both crude benchmarks had settled more than 11% lower overnight, marking the steepest single-day drop in four years after the International Energy Agency proposed the largest release of emergency reserves in its history.
Market participants also booked profits amid uncertainty about the trajectory of the conflict in the Middle East. Mixed signals from President Donald Trump — who earlier suggested the war could be nearing an end — were followed by reports of intense overnight airstrikes by the United States and Israel on Iranian targets.
Investors are now closely watching upcoming U.S. inflation data, particularly the Personal Consumption Expenditures index scheduled for release on Friday, which could influence expectations for potential Federal Reserve interest rate cuts.
Despite near-term volatility, analysts say the medium- to long-term outlook for silver remains positive.
“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. (Source: IANS)
