Gold prices declined in the domestic futures market on February 10 as traders booked profits at elevated levels amid a rebound in the US dollar. The pullback comes after a strong rally in precious metals.
On the Multi Commodity Exchange (MCX), gold April futures slipped around 1.3%, to trade near Rs. 1,56,001 per 10 grams. Silver witnessed steeper losses with March contracts falling over 2% to around Rs. 2,57,100 per kg.
The price of 24K gold decreased by Rs. 10 in early trade on Tuesday with ten grams of the precious metal trading at Rs. 1,57,791.
The price of 22K gold also declined by Rs. 10 with ten grams of the yellow metal selling at Rs. 1,44,750.
The price of ten grams of 24K gold stood at Rs. 1,57,791 in Mumbai and Kolkata and Rs. 1,59,060 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,58,060.
The decline in gold prices coincided with a recovery in the US dollar. The dollar index which had slipped below 97 in the previous session edged higher on Tuesday, making dollar-denominated bullion more expensive for overseas buyers.
Expectations of interest rate cuts by the US Federal Reserve remain supportive for gold in the medium term, but near-term price action is being driven by upcoming macroeconomic data.
Investors are awaiting the US nonfarm payrolls report and inflation data later this week for clearer signals on the Fed’s policy trajectory.
While easing geopolitical tensions have reduced immediate safe-haven demand, lingering risks continue to provide an underlying floor to gold prices, limiting the extent of the downside.
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Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold around the Rs. 1,56,600 and Rs. 1,55,000 range with a stop loss below Rs. 1,54,000 for the targets of Rs. 1,59,100 and Rs. 1,60,600. At the same time, buying silver around the Rs. 2,56,000 and Rs. 2,52,000 range with a stop loss below Rs. 2,47,700 for the targets of Rs. 2,66,000 and Rs. 2,72,000.
Internationally, gold has support at $5,024 and $4,970 while resistance is at $5,122 and $5,164 per troy ounce. Silver has support at $78.80 and $76, while resistance is at $84.40 and $88 per troy ounce in today’s session.