Mumbai’s commodity markets have been a rollercoaster in recent days, with precious metals swinging wildly. After a sharp plunge on Tuesday, gold and silver surged dramatically during Wednesday’s trading session. However, Thursday brought a modest pullback, primarily driven by a strengthening US dollar.
On the Multi Commodity Exchange (MCX), April-delivery gold tumbled to a daily low of 1,57,701 rupees per 10 grams. March-delivery silver followed suit, hitting 2,58,730 rupees per kilogram at its lowest point.
As of around 11:51 AM, April 2 expiry gold was trading 0.24% lower at 1,58,377 rupees per 10 grams, down 378 rupees. The March 5 expiry silver contract shed 0.39%, or 1,015 rupees, to 2,62,003 rupees per kilogram.
The dollar index climbed from 96.83 to 96.94 in early trade, bolstered by robust US employment data. A stronger dollar makes gold and silver costlier for buyers using other currencies, often dampening demand.
Experts point to January’s US job growth exceeding expectations, with unemployment dropping to 4.3%. This signals a resilient labor market, potentially allowing the Federal Reserve to hold interest rates steady for now.
Manav Modi from Motilal Oswal Financial Services noted that while job additions over the past 13 months hit a peak, revised figures show only 1,81,000 jobs added in early 2025, far below the initial 5,84,000 estimate.
Earlier, geopolitical tensions had propelled prices upward in international markets. Talks between US President Donald Trump and Israeli PM Benjamin Netanyahu revealed no decisive deal on Iran, though discussions with Tehran continue.
Analysts see support for gold at 1,56,000 rupees, with resistance near 1,60,500. On Comex, gold trades between $5,000 and $5,150, down from highs of $5,500-$5,600.
Market observers maintain a bullish long-term outlook for gold, viewing the dip as profit-taking. Silver on Comex hovers between $80 and $87, retreating from record levels above $121.
Investors are now eyeing Friday’s US inflation data and UK GDP figures, which could dictate the next market moves.