Gold prices declined in early trade on Thursday. Industry experts claim a stronger US dollar and firm economic data dampened expectations of immediate interest rate cuts by the US Federal Reserve. On the Multi Commodity Exchange (MCX), gold futures for April delivery opened 0.47% lower at Rs. 1,58,000 per 10 grams compared to the previous close of Rs. 1,58,755.
Silver futures for the March expiry also saw selling pressure. The contract opened at Rs. 2,61,361 per kg, down 0.63%.
The price of 24K gold decreased by Rs. 120 in early trade on Thursday with ten grams of the precious metal trading at Rs. 1,58,400.
The price of 22K gold also declined by Rs. 110 with ten grams of the yellow metal selling at Rs. 1,45,200.
The price of ten grams of 24K gold stood at Rs. 1,58,400 in Mumbai and Kolkata and Rs. 1,59,280 in Chennai.
In Delhi the price of ten grams of 24K gold stood at Rs. 1,58,550.
Internationally bullion prices softened as the US dollar index extended gains following stronger-than-expected US January jobs data.
The strong employment numbers reduced the probability of near-term monetary easing by the Federal Reserve strengthening the dollar and pressuring dollar-denominated commodities.
Spot gold slipped 0.4% to $5,058 per ounce after rising over 1% in the previous session. US gold futures for April delivery declined 0.3% to $5,080 per ounce.
Spot silver dropped 1.4% to $82.87 per ounce after a sharp rally earlier in the week.
Despite the pullback gold stays above the key $ 5,000-per-ounce mark supported by central bank buying and ongoing geopolitical risks.
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Analysts expect MCX gold to trade within a range of Rs. 1,57,000-Rs. 1,60,000 in the near term, with a mild negative bias.
Silver prices may remain under pressure and could test the Rs. 2,57,000 level if global weakness persists.
Internationally gold has support near $5,000 while resistance is placed around $5,100-$5,120. Domestically support for MCX gold is pegged near Rs. 1,56,000 with resistance around Rs. 1,60,500.