Gold prices moved lower on Thursday in the early trading session as investors booked profits after the recent rally. February gold futures on the Multi Commodity Exchange (MCX) dropped by almost 0.56% to Rs. 1,37,238 per 10 grams. Meanwhile, March silver futures went down by about 0.81% to Rs. 2,48,586 per kg.
The drop highlights short-term caution after we saw impressive gains in December, when both metals, gold and silver, managed to hit all-time highs.
The price of 24K gold declined by Rs. 27 by 10:00 am on Thursday. 10 grams of the precious metal traded at Rs. 1,38,000 at the time of writing.
The price of 22K gold also decreased by Rs. 25, with ten grams of the yellow metal selling at Rs. 1,26,500.
The price of ten grams of 24K gold stood at Rs. 1,38,000 in Mumbai and Kolkata, and Rs. 1,39,090 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,38,150.
The primary pressure on gold prices is mainly coming from the US dollar index. It is now near a two-week high, while the benchmark US 10-year Treasury yield has managed to rebound from recent lows.
A stronger dollar makes gold more expensive for buyers holding other currencies, while higher bond yields raise the opportunity cost of holding non-yielding assets such as gold.
In the previous session, MCX gold futures ended nearly 0.7% lower, while silver futures dropped over 3%, highlighting profit booking.
Despite near-term weakness, the yellow metal's losses have been limited to a certain extent by the anticipated Federal Reserve monetary easing.
The recent figures from the US labour market showed a decrease in job openings to the minimum level in 14 months in November, confirming the belief that interest rates could be cut.
The market now anticipates two reductions in the rate in 2026. Meanwhile, the upcoming non-farm payrolls data is likely to have a major influence on the Fed's policy course.
Also Read: Will Gold and Silver Set Fresh Highs in 2026? Outlook and Price Forecasts
In international market support is seen near $4,430 and $4,400 per ounce, while resistance is seen at $4,484 and $4,522.
Silver support lies at $76.35 and $74.00, with resistance near $80 and $82.70.
On the MCX, Rs. 1,37,200 and Rs. 1,36,000 are crucial support levels for gold, with resistance placed at Rs. 1,38,800 and Rs. 1,39,500.
For silver, support is seen at Rs. 2,46,600 and Rs. 2,42,000, while resistance lies at Rs. 2,54,000 and Rs. 2,58,800.