Mumbai, February 26 – Gold and silver prices tumbled Thursday as investors locked in profits following recent gains, though the decline was tempered by escalating geopolitical risks and a softening US dollar.
On the Multi Commodity Exchange (MCX), April gold futures slid 0.38% during intra-day trade to settle at ₹1,60,529 per 10 grams. March silver contracts fared worse, plunging 1.46% to ₹2,64,395 per kilogram.
The previous session had seen April gold rise 0.74% and March silver surge 3%, prompting the profit-taking spree. Yet, broader market dynamics provided a floor under prices.
Uncertainty over US tariffs continues to loom large. With the American Supreme Court and President Donald Trump taking divergent stances, trade policy remains in flux. Trump insists tariffs are central to his strategy, imposing 10% duties on select imports and up to 15% or more on goods from certain nations.
This tariff ambiguity, coupled with ongoing trade negotiations, has bolstered precious metals as safe-haven assets. The dollar index dipped 0.13% to 97.58, making gold and silver more affordable for buyers using foreign currencies.
Analysts point to heightened safe-haven demand driven by the third round of US-Iran nuclear talks in Geneva on February 27 and increased US military activity in the Middle East.
Looking ahead, the medium- to long-term outlook for precious metals stays bullish. Comex gold trades between $5,100 and $5,300 after recent volatility. For Comex silver, sustained levels above $92-96 could spark a rally to $100-105, retesting prior highs.
Technical levels for MCX gold show support at ₹1,60,000 and ₹1,57,700, with resistance at ₹1,62,500 and ₹1,64,000. Silver support lies at ₹2,63,600 and ₹2,58,800, resistance at ₹2,74,000 and ₹2,80,000.
Market experts foresee volatility this week, advising investors to book profits at elevated levels and consider fresh buys on dips. As global uncertainties persist, gold and silver remain key portfolio hedges.