Gold and silver prices declined for the second consecutive session on Tuesday, with investors parsing mixed US economic data and awaiting clearer signals on the US Federal Reserve’s policy direction.
MCX Gold and Silver Futures Under Pressure
On the Multi Commodity Exchange, gold April futures slipped 0.56 percent on a day to day basis to Rs 1,53,889 per 10 grams. Silver March futures fell 1.18 percent to Rs 2,37,064 per kilogram.The weakness reflects caution in the bullion market as participants reassess interest rate expectations amid evolving macroeconomic data.
US Inflation Moderates, Jobs Data Surprises
In international markets, spot gold fell below the $5,000 level to $4,992 per ounce, while spot silver declined nearly 3 percent.US consumer prices in January rose less than expected, pointing to moderation in inflation. However, job growth came in stronger than anticipated, complicating the outlook for near term rate cuts.
Analysts said investors remain uncertain whether softer inflation will pave the way for easier monetary policy, or whether resilient labour market conditions will keep interest rates elevated for longer.
Dollar Index Strength Weighs on Bullion
The dollar index advanced 0.21 percent to 97.12, tracking the moderation in US CPI. A stronger dollar makes dollar priced bullion more expensive for holders of other currencies, which in turn limits demand.COMEX gold is currently trading in the $4,850 to $5,100 range after a sharp correction from recent highs above the $5,500 to $5,600 zone.
Easing Geopolitical Concerns Cap Safe Haven Demand
Gold also faced pressure as geopolitical tensions showed signs of easing. A senior Iranian diplomat said that Iran is seeking a nuclear agreement with the United States that could provide economic benefits for both sides. This reduced immediate safe haven demand for the yellow metal.Key Support and Resistance Levels
An analyst noted that gold has support at Rs 1,45,000 and Rs 1,50,000, while resistance is seen at Rs 1,60,800 and Rs 1,65,000.For MCX silver, support levels are placed at Rs 2,25,000 and Rs 2,60,000, with resistance at Rs 3,00,000 and Rs 3,25,000.
Broader Trend Remains Positive
Despite the recent decline, the overall trend in precious metals remains constructive, supported by ongoing geopolitical tensions, strong central bank buying, and investor movement away from sovereign bonds and currencies.Going forward, investors will track global liquidity conditions, US dollar movement, bond yields, developments in US Iran discussions, and negotiations related to the Russia Ukraine conflict for further direction in gold and silver prices.
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