Gold Price / Gold and Silver Prices Drop as Dollar Strengthens
Key Points
- Gold and silver prices dipped as the US dollar strengthened after in-line US inflation data.
- MCX gold April futures fell 0.56% to ₹1,55,023 per 10 grams; MCX silver March futures dropped 1.99% to ₹2,39,501 per kg.
- Analysts see short-term bearish pressure but broader bullish trend intact due to geopolitical tensions and central bank buying.
New Delhi, Feb 16: Gold and silver prices declined on Monday, as the US dollar strengthened tracking in-line US inflation data.
MCX gold April futures dipped 0.56 per cent to Rs 1,55,023 per 10 grams around 12.30 am on an intra-day basis. Meanwhile MCX silver March futures declined 1.99 per cent to Rs 2,39,501 per kg.
The dollar index surged 0.10 per cent to 97, tracking the
moderation in US CPI (consumer price index) in January. The index earlier
received support from strong jobs data that suggested underlying economic
health. A stronger dollar made greenback-priced bullion more expensive for
other currency holders.
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The US CPI rose 0.2 per cent in January after a 0.3 per cent uptick in December. The U.S. inflation came in at 2.4 per cent in January on an annual basis, down from the previous month's 2.7 per cent. The in-line inflation data and jobs growth could give the US Fed room to keep interest rates unchanged.
"Gold has support at Rs 1,54,000 and Rs 1,53,150 while resistance at Rs 1,56,800 and Rs 1,58,200. MCX silver has support at Rs 2,38,800 and Rs 2,32,000, and resistance is at Rs 2,49,100 and Rs 2,55,000," an analyst said.
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Analysts said that the broader trend in precious metal remain constructive due to ongoing geopolitical tensions, strong central bank buying, and investor flight from sovereign bonds and currencies
COMEX Silver is currently trading in the $73–$84 zone after a steep correction from record highs above $121. While the broader bullish structure remains intact on higher timeframes, the steep pullback has pushed prices below key moving averages, indicating short-term bearish pressure and an extended corrective phase, market participants said.
Investors remain keen on the release of the Federal Open Market Committee (FOMC) meeting minutes, the US GDP advance estimate, and PCE inflation data for further clues on the US Fed interest rate trajectory.
Further, market participants are looking for cues on crude price movements from progress on US-Iran talks, and ongoing negotiations to end the Russia-Ukraine war.
(IANS)
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