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Gold prices declined in the domestic futures market on Thursday, February 5, as investors booked profits following the recent rally and easing geopolitical concerns reduced safe-haven demand. A stronger US dollar further pressured precious metals, making bullion costlier for holders of other currencies.
On the Multi Commodity Exchange (MCX), gold April futures fell nearly 3% to Rs. 1,48,455 per 10 grams. Silver March futures saw steeper losses, plunging close to 9% to Rs. 2,44,654 per kg.
The price of 24K gold increased by Rs. 502 in early trade on Tuesday, with ten grams of the precious metal trading at Rs. 1,54,420.
The price of 22K gold also surged by Rs. 460, with ten grams of the yellow metal selling at Rs. 1,41,550.
The price of ten grams of 24K gold stood at Rs. 1,54,420 in Mumbai and Kolkata and Rs. 1,56,220 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,54,570.
Gold prices experienced a decline amid reports of the United States and Iran resuming diplomatic talks, which were scheduled to occur in Oman.
Traders cut their gold positions as the prospect of dialogue reduced immediate geopolitical risk premiums.
US President Donald Trump indicated that his recent talks with Chinese President Xi Jinping led to positive results, which addressed key global and bilateral issues.
The dollar index also increased by 0.20% to 97.81 and created additional pressure on gold prices. The demand for dollar-denominated commodities such as gold and silver decreases when the dollar becomes stronger.
Meanwhile, international gold prices increased overnight as spot gold reached more than $5,016 per ounce. Silver also recorded gains.
Also Read: Gold, Silver, and Oil Under Pressure: How to Trade the Current Market Spiral
Internationally, gold has key support near $4,884 and $4,770 per ounce, while resistance is seen around $5,000 and $5,145. Silver support lies near $81.20 and $78, with resistance at $88.80 and $92.40.
On MCX, gold support is at Rs. 1,50,500 and Rs. 1,47,700, while resistance is placed at Rs. 1,56,800 and Rs. 1,60,000.
For silver, support is seen near Rs. 2,61,100 and Rs. 2,55,000, with resistance around Rs. 2,78,000 and Rs. 2,86,000.
