Gold and silver prices declined on Monday as the US dollar strengthened following in-line US inflation data and steady economic indicators.
MCX Gold and Silver Futures Trade Lower
On the Multi Commodity Exchange, MCX gold April futures slipped 0.56 percent to Rs 1,55,023 per 10 grams around 12:30 am intra-day.At the same time, MCX silver March futures fell 1.99 percent to Rs 2,39,501 per kg.
The decline in domestic bullion prices mirrored global cues, with strength in the US dollar weighing on sentiment.
US Dollar Index Rises on Inflation, Jobs Data
The dollar index rose 0.10 percent to 97, tracking the moderation in US Consumer Price Index data for January. The index had earlier found support from strong US jobs data, which indicated underlying economic resilience.A stronger dollar makes dollar-priced commodities such as gold and silver more expensive for holders of other currencies, putting pressure on prices.
US CPI increased by 0.2 percent in January, compared with a 0.3 percent rise in December. On an annual basis, inflation stood at 2.4 percent in January, easing from 2.7 percent in the previous month.
The combination of in-line inflation data and stable jobs growth may provide room for the US Federal Reserve to keep interest rates unchanged.
Key Support and Resistance Levels for Gold and Silver
Market participants highlighted important technical levels for precious metals on MCX.For gold, support is seen at Rs 1,54,000 and Rs 1,53,150, while resistance is placed at Rs 1,56,800 and Rs 1,58,200.
For silver, support levels are at Rs 2,38,800 and Rs 2,32,000, with resistance at Rs 2,49,100 and Rs 2,55,000.
COMEX Silver Trades in Corrective Zone
COMEX silver is currently trading in the 73 dollar to 84 dollar zone after a sharp correction from record highs above 121 dollars.Although the broader bullish structure remains intact on higher timeframes, the steep pullback has pushed prices below key moving averages. This indicates short term bearish pressure and an extended corrective phase.
Focus on FOMC Minutes, US GDP and PCE Data
Investors are closely watching the upcoming release of the Federal Open Market Committee meeting minutes, the US GDP advance estimate, and PCE inflation data. These indicators are expected to offer further clarity on the US Federal Reserve’s interest rate trajectory.Additionally, market participants are monitoring developments in US Iran talks and ongoing negotiations aimed at ending the Russia Ukraine war, as these factors could influence crude oil prices and broader commodity market sentiment.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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