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Gold and silver prices fell on MCX due to profit booking after recent gains. However, ongoing geopolitical tensions, US tariff concerns, and dollar fluctuations are limiting losses, keeping the medium- to long-term outlook for precious metals cautiously optimistic.
Gold and silver fall in the international market (Image Source: Internet)
New Delhi: Gold and silver prices witnessed a decline on the Multi Commodity Exchange (MCX) on Thursday morning, February 26, as investors booked profits following strong gains in the previous session. MCX gold April futures fell by more than ₹600, or 0.40%, to ₹1,60,516 per 10 grams. Similarly, MCX silver March contracts dropped sharply by over ₹5,400, or 2%, to ₹2,62,892 per kilogram.
In the previous trading session, precious metals had posted solid gains. Gold April futures had settled at ₹1,61,145 per 10 grams, rising 0.74%, while silver March futures closed at ₹2,68,316 per kilogram, up nearly 3%. The latest dip indicates short-term profit-taking rather than a reversal in the broader trend.
Gold prices also weakened in global markets, with US gold futures for April delivery slipping by around half a percent. At the same time, the US dollar index declined by 0.20%, making gold relatively cheaper for overseas buyers. Typically, a weaker dollar supports gold prices, but in this case, profit booking outweighed that advantage.
Despite the short-term correction, analysts note that the medium- to long-term outlook for precious metals remains bullish, supported by ongoing global uncertainties.
Uncertainty surrounding US trade tariffs continues to play a significant role in influencing gold prices. The US administration has begun collecting a 10% tariff on imports, with plans to increase rates to 15% or higher for certain countries. US President Donald Trump has indicated that tariffs will remain central to his trade strategy and may even help replace parts of the existing income tax system.
On the geopolitical front, attention is also on the evolving situation between the US and Iran. The two countries are set to hold a third round of nuclear talks in Geneva on February 27, even as the US increases its military presence in the Middle East. Such geopolitical tensions typically boost safe-haven demand for gold.
Analysts expect volatility in gold and silver prices due to fluctuations in the dollar index and developments in US-Iran talks. Manoj Kumar Jain of Prithvifinmart Commodity Research advises investors to consider booking profits at higher levels and wait for corrective dips before entering fresh long positions.
According to Jain, gold has support levels near ₹1,60,000 and ₹1,57,700 on MCX, with resistance at ₹1,62,500 and ₹1,64,000. Silver has support at ₹2,63,600 and ₹2,58,800, while resistance is seen at ₹2,74,000 and ₹2,80,000.
Meanwhile, Jigar Trivedi of IndusInd Securities believes MCX gold April futures could climb toward ₹1,62,500 per 10 grams, citing positive global trends.
Overall, while short-term corrections are visible, broader economic and geopolitical uncertainties continue to provide underlying support to precious metals.
