Gold, Silver Prices Fall On MCX As Investors Book Profits After Rally

Gold and silver prices declined on Wednesday as investors booked profits following recent gains, although a weaker US dollar and ongoing geopolitical tensions helped limit the fall.

On the Multi Commodity Exchange of India, April futures of Gold fell 0.52 per cent to Rs 1,62,452 per 10 grams around 11:15 AM on an intraday basis. May futures of Silver dropped 1.69 per cent to Rs 2,73,150 per kg.

The decline followed a strong rally in the previous session, when MCX gold April futures rose nearly 2 per cent and silver May futures surged around 4 per cent.

The US Dollar weakened 0.07 per cent on an intraday basis to 98.75 cents, making dollar-denominated bullion cheaper for holders of other currencies.

Crude Oil prices slipped below the $90-per-barrel mark, easing inflation concerns among traders that had earlier supported demand for gold as a hedge against rising prices.

International Brent Crude fell 0.99 per cent to $86.93 per barrel, while West Texas Intermediate futures declined 0.75 per cent to $82.82.

Both oil benchmarks had settled more than 11 per cent lower overnight, marking the sharpest single-day drop in four years after the International Energy Agency proposed the largest release of emergency reserves in its history.

Market participants booked profits amid uncertainty surrounding the trajectory of the war after mixed signals from US President Donald Trump. He had earlier suggested that the conflict could be nearing its end, but fresh US and Israeli air strikes on Iran overnight added to market volatility.

Investors Await Key US Inflation Data

Investors are also closely watching the upcoming Personal Consumption Expenditures Index, due on Friday, which will likely provide clues about inflation trends in the United States and potential interest rate cuts by the Federal Reserve.

Despite short-term volatility, analysts said the medium-to-long-term outlook for COMEX Silver remains positive.

An analyst noted that MCX gold has support between Rs 1,61,800 and Rs 1,60,350, with resistance at Rs 1,64,400 and Rs 1,66,600. For MCX silver, support is seen at Rs 2,74,000 and Rs 2,68,000, while resistance lies at Rs 2,81,000 and Rs 2,85,500.

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