Gold prices retreated on the Multi-Commodity Exchange (MCX) in early trade on February 26 as traders booked profits following strong gains in the previous session. But a softer US dollar and ongoing geopolitical tensions prevented sharper declines in precious metals.
MCX gold April futures fell over 0.40% to Rs. 1,60,516 per 10 grams. Silver March contracts also dropped sharply and declined 2% to Rs. 2,62,892 per kg.
The price of 24K gold decreased by Rs. 21 in early trade with ten grams of the precious metal trading at Rs. 1,61,680.
The price of 22K gold also declined by Rs. 20 with ten grams of the yellow metal selling at Rs. 1,48,200.
The price of ten grams of 24K gold stood at Rs 1,61,680 in Mumbai and Kolkata and Rs 1,62,770 in Chennai.
In Delhi the price of ten grams of 24K gold stood at Rs 1,61,830.
Gold prices showed mixed movement internationally. Spot gold was up 0.3% at $5,184.43 per ounce, supported by safe-haven demand while US gold futures for April delivery slipped 0.5% to $5,199.20.
Silver also edged higher globally with spot prices rising 0.1% to $89.49 per ounce after it touched a three-week high earlier this week.
The US dollar index weakened by 0.20%, making gold cheaper for holders of other currencies.
The US administration has begun imposing 10% import tariffs, with rates expected to rise further for select countries.
President Donald Trump has reiterated that tariffs will remain central to the US trade strategy.
At the same time investors now closely watch the third round of US-Iran nuclear talks scheduled in Geneva on February 27 amidst heightened military activity in the Middle East.
These uncertainties typically strengthen gold’s appeal as a safe-haven asset.
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On MCX gold has support at Rs. 1,60,000 and Rs. 1,57,700. Resistance is at Rs. 1,62,500 and Rs.1,64,000. Silver has support at Rs. 2,63,600 and Rs. 2,58,800. Resistance is at Rs. 2,74,000 and Rs. 2,80,000.
Internationally gold has support at $5,164 and $5,122 while resistance is at $5,258 and $5,300 per troy ounce. Silver has support at $88 and $84.80 while resistance is at $93.20 and $96 per troy ounce.