Gold prices fell in both international and domestic markets on Thursday after easing geopolitical tensions over Greenland boosted the US dollar.
MCX Gold Falls Below ₹1.53 Lakh, Silver Prices Edge Higher
New Delhi: Gold and silver prices fluctuated on Thursday. Following a decline from record levels in the international market, gold prices remained under pressure in the domestic futures market, while silver saw limited gains. The impact of declining safe-haven demand and a strengthening US dollar was clearly visible in the bullion market.
Gold prices fell from their record highs in the global market on Thursday. Signs of easing geopolitical tensions dampened safe-haven demand. Spot gold fell 0.8% to $4,799.79 per ounce, after reaching a record high of $4,887.82 in the previous session. US gold futures for February delivery also fell 0.6% to trade at $4,806.60 per ounce.
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Gold prices fell on MCX in the domestic market. MCX Gold opened weak at ₹1,51,557 per 10 grams, compared to its previous close of ₹1,52,862. During trading, gold fell ₹638, or 0.42%, to ₹1,52,224 per 10 grams. Notably, MCX Gold had touched a new record high of ₹1,58,475 per 10 grams in the previous session, following which profit-booking was witnessed.
Conversely, MCX silver prices saw a slight rise. MCX Silver opened at ₹3,19,843 per kg, compared to its previous close of ₹3,18,492. In early trade, silver was trading at Rs 3,19,672 per kg, up by Rs 1,180, or 0.37%. Prior to this, silver had touched a high of Rs 3,25,602. In the previous session, MCX Silver had hit an all-time high of Rs 3,35,521 per kg.
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US President Donald Trump's statement is believed to be a major reason for the pressure on gold and silver prices. Trump spoke of reaching an agreement on a "framework for a future deal" regarding Greenland and backed off from his threat to impose tariffs on European countries. This reduced global tensions and reduced demand for safe-haven investments, which directly impacted bullion prices.
According to experts, the direction of gold and silver in the coming days will depend on the dollar's movement, geopolitical developments, and signals from central banks. After reaching higher levels, the market is likely to remain volatile.
