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Gold prices extended losses in early trade February 17 pressured by a softer US dollar and easing safe-haven demand. On the Multi Commodity Exchange (MCX) gold April futures declined by nearly 0.80% to Rs. 1,53,532 per 10 grams. Silver March futures fell more sharply dropping about 2% to Rs. 2,35,142 per kg.
Profit booking at higher levels and subdued global participation have added to the downside pressure.
The price of 24K gold decreased by Rs. 153 in early trade with ten grams of the precious metal trading at Rs. 1,53,910.
The price of 22K gold also declined by Rs. 140 with ten grams of the yellow metal selling at Rs. 1,42,000.
The price of ten grams of 24K gold stood at Rs 1,53,910 in Mumbai and Kolkata and Rs 1,56,220 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs 1,56,580.
A sharp rise in the US dollar index which climbed above 97 has made dollar-denominated bullion more expensive for overseas buyers.
A stronger greenback typically weighs on gold as it reduces the metal’s appeal for holders of other currencies.
Additionally the Lunar New Year holidays in China have kept trading volumes at low levels across Asian markets, limiting new momentum for precious metals.
International markets show a decline in spot gold which dropped almost 1% to approximately $4,948 per ounce. US gold futures also experienced a decrease.
Market sentiment has changed amid optimism around US-Iran nuclear talks. The diplomatic talks have created expectations of progress. IT reduced safe-haven purchasing of gold and silver.
Investors are now closely watching upcoming US economic data including Federal Reserve meeting minutes, GDP estimates and PCE inflation numbers.
These releases are expected to offer clarity on the central bank’s interest rate trajectory. Current market pricing suggests the possibility of three rate cuts this year, with the first potentially beginning in July.
Also Read: Gold Price Today: MCX Gold Slides Nearly 2% on Profit Booking as RBI Policy Weigh on Sentiment
On MCX gold has immediate support near Rs. 1,53,150, followed by Rs. 1,51,800. Resistance levels are placed around Rs. 1,55,500 and Rs. 1,56,700. Silver support is seen at Rs. 2,34,000 and Rs. 2,28,800 with resistance near Rs. 2,44,000-Rs. 2,47,700.
Internationally gold has support at $4,970 and $4,915 while resistance is at $5,045 and $5,080 per troy ounce. Silver has support at $74 and $71.20 while resistance is at $78 and 80.40 per troy ounce.
