Gold and silver prices declined in domestic and global markets as a stronger dollar, thin Asian trading during Lunar New Year holidays, and profit booking weighed on sentiment.
MCX Gold Drops Nearly 1%, Silver Slides Over 2% in Early Trade
New Delhi: Gold and silver prices fell in the domestic futures market on Tuesday morning, February 17th. A strong dollar, weak spot demand, and profit-booking kept precious metals under pressure. Gold futures for April delivery on the Multi Commodity Exchange (MCX) fell by nearly ₹1,200, or about 0.80%, to ₹1,53,532 per 10 grams, while March silver futures fell by more than ₹4,700, or nearly 2%, to ₹2,35,142 per kilogram.
The dollar index rose by more than 2% to 97.15, making dollar-denominated bullion more expensive for foreign buyers. Many Asian markets, including China, are closed for the Lunar New Year, which kept global trading volumes low and limited price gains. In the previous session, gold April futures fell nearly 1% to ₹1,54,760 per 10 grams, and silver March futures fell nearly 2% to ₹2,39,891 per kilogram.
Profit booking drags Gold lower, Silver sees sharp fall in morning trade; Check rates here
According to experts, positive signals regarding the US-Iran nuclear deal are reducing safe-haven demand, which is putting pressure on gold and silver. Furthermore, the market is closely monitoring the minutes of the US Federal Reserve's last meeting, advance US GDP estimates, and PCE inflation data. Currently, traders are anticipating three interest rate cuts this year, with the first cut expected in July.
Globally, precious metals also saw declines. Spot silver fell nearly 2.7% to $74.51 per ounce, while spot gold slipped nearly 0.9% to $4,947.98 per ounce. US gold futures also fell 1.6% to trade at $4,966.80 per ounce. Among other metals, platinum fell 0.8% and palladium 1.5%.
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Analysts believe that the dollar index's movement, geopolitical developments, and signals related to the Federal Reserve's interest rate policy will determine the direction of gold and silver this week. A low interest rate environment is generally considered positive for gold, but currently, prices may continue to fluctuate due to a strong dollar and weak demand.
