Gold prices retreated in early Friday trade as investors booked profits amid a softer US dollar, cooling expectations of near-term interest rate cuts by the US central bank, and easing geopolitical risks.
On the Multi Commodity Exchange of India (MCX), gold February futures slipped 0.22% to Rs. 1,42,799 per 10 grams around 10:20 am, while MCX silver March futures fell sharply by over 0.7% to Rs. 2,89,526 per kg.
The US gold futures for February delivery also declined by around 0.5% to $4,594.81, reflecting reduced safe-haven demand and pressure from currency movements.
The price of 24K gold increased by Rs. 22 by 10:20 am. 10 grams of the precious metal traded at Rs. 1,43,400.
The price of 22K gold also increased by Rs. 20, with ten grams of the yellow metal selling at Rs. 1,31,450.
The price of ten grams of 24K gold stood at Rs. 1,43,400 in Mumbai and Kolkata, and Rs. 1,44,330 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,43,550.
A key driver behind the pullback is stronger-than-expected US economic data, which has supported the dollar.
The dollar index is up about 0.20% for the week and nearly 1% month-to-date, extending a multi-week advance.
A stronger dollar typically weighs on gold prices by making the metal more expensive for buyers using other currencies.
Adding to the pressure, expectations of policy easing by the Federal Reserve have softened. Recent labor market data showed weekly US jobless claims falling to 198,000, below market expectations, according to Reuters.
Geopolitical risk has also eased after comments from Donald Trump indicating a possible delay in any military action against Iran.
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In global markets, gold has support at $4,520 and $4,455, with resistance at $4,640 and $4,690. Silver support lies at $86.10 and $84.75, while resistance is seen at $92.15 and $94.40.
On MCX, gold support is placed near Rs. 1,42,350 and Rs. 1,40,310, with resistance at Rs. 1,44,350 and Rs. 1,45,670.
Silver support stands at Rs. 2,88,810 and Rs. 2,84,170, while resistance is at Rs. 2,94,810 and Rs. 2,96,470.