Silver, gold futures decline as traders book profits, firm dollar
Precious metals declined in the futures trade on Tuesday, with silver falling 2 per cent to INR2.57 lakh per kilogram, while gold slipped to INR1.57 lakh per 10 grams as traders booked profits amid weak gains in global markets.On the Multi Commodity Exchange (MCX), silver for the March delivery depreciated by INR5,422, or 2.06 per cent, to INR2,57,198 per kilogram. On Monday, the white metal had surged INR12,728, or 5.09 per cent, to close at INR2,62,620 per kg.
Gold futures also witnessed selling pressure, with the April contract decreasing INR677, or 0.43 per cent, to INR1,57,389 per 10 grams. In the previous session, the yellow metal climbed INR2,615, or nearly 1.7 per cent, to settle at INR1,58,066 per 10 grams.“Gold and silver prices saw profit-taking and some consolidation on Tuesday, with MCX gold trading around the INR1.55-1.57 lakh per 10g zone after earlier strength, while silver struggled below key levels near INR2.56-2.60 lakh per kilogram in intra-day trade,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.He added that precious metals came under pressure as global cues weakened and the US dollar firmed, prompting traders to unwind extended positions and lock in gains after recent rebounds.
“Market sentiment remains cautiously constructive, with investors awaiting fresh macro data and policy cues that could drive safe-haven demand and price direction in the coming sessions,” Garg said.
The dollar index, which measures the greenback’s strength against a basket of six currencies, inched up 0.09 per cent to 96.90, putting pressure on bullion prices globally.In the international market, Comex silver futures for March delivery fell 1.20 per cent to USD 81.25 per ounce. On Monday, the metal had finished at USD 82.23 per ounce.
“Silver fell to below USD 82 per ounce on Tuesday, breaking a two-day advance as traders locked in profits, while volatility in the precious metals market persisted following a historic rout in recent weeks,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.He added that the white metal remains down about 33 per cent from its all-time high reached on January 29, prior to a sharp selloff that wiped out nearly 50 per cent of its value.
Gold futures for April contract slipped by USD 24.19, or 0.48 per cent, to USD 5,055.21 per ounce. It had closed at USD 5,079.4 per ounce in the previous market session.“Gold slipped after two days of gains as profit-taking emerged in a choppy market still stabilising after a historic selloff,” Kotak Securities said in a note.
The brokerage firm added that attention turns to retail sales, while macro uncertainty and easing expectations continue to support bullion despite near-term volatility.On Monday, the dollar had weakened following reports that Chinese regulators advised domestic institutions to reduce exposure to US Treasuries, raising concerns over foreign demand for dollar assets.
