Mumbai’s precious metals market witnessed sharp swings on Tuesday, driven by a robust US dollar and profit-taking after recent gains. Gold prices tumbled in early trading on the Multi Commodity Exchange (MCX), dropping 0.65% to 1,60,541 rupees per 10 grams by midday. Silver, however, staged a strong recovery, climbing 0.46% to 2,66,542 rupees per kilogram after an initial dip.
The dollar index surged 10.19% intraday to 97.89, making gold and silver costlier for holders of other currencies. This overshadowed brief highs, with gold hitting three-week peaks earlier in the session before retreating. On Comex, April gold futures fell 1.1% to $5,170.70 per ounce, while spot gold shed 1.5% to $5,150.38. Spot silver plunged 3.1% to $85.50 per ounce from two-week highs.
Investors remained cautious amid tariff uncertainties following a US Supreme Court ruling against President Trump’s emergency tariffs. Trump warned of higher tariffs on countries backing out of trade deals, fueling safe-haven demand for gold. Heightened geopolitical tensions from Trump’s 10-day deadline for a ‘meaningful deal’ with Iran added to the mix, potentially supporting gold prices short-term.
China’s Lunar New Year holiday ended, reopening futures markets and improving global liquidity. Silver traded at a premium to Western spot prices, signaling tight local supplies and robust industrial demand. Analysts maintain a positive medium to long-term outlook, backed by structural supply constraints and industrial needs.
Experts predict gold support at 1,60,600 and 1,58,800 rupees, with resistance at 1,63,300 and 1,65,000. For MCX silver, supports lie at 2,61,000 and 2,56,600 rupees, resistance at 2,70,000 and 2,78,000. Despite volatility, the market’s fundamentals remain solid, drawing investor interest in these timeless assets.