Gold February futures on MCX decreased by Rs 456 or 0.34% to Rs 1,33,674 per 10 grams, pulling back from its recent peak of Rs 1,35,496 reached the previous day. In the interim, silver March futures experienced a decline of Rs 2,067, equivalent to 1.04%, settling at Rs 1,95,834 per kilogram, and remaining beneath its all-time high of Rs 2,01,615.
Investor sentiment exhibited caution on Tuesday in anticipation of significant U.S. data releases and the BOJ policy decision, which analysts contend could influence the forthcoming trajectory of precious metals. On Monday, gold and silver concluded the trading session with gains in both domestic and international markets. The February futures contract for gold concluded at Rs 1,34,130 per 10 grams, reflecting an increase of 0.38%. Meanwhile, the March futures contract for silver settled at Rs 1,97,901 per kilogram, marking a rise of 2.62%.
Gold and silver experienced gains during a session characterized by significant volatility, influenced by mixed economic data from the U.S. and a decline in the dollar index. The U.S. Empire State manufacturing index has contracted once more, while the dollar index is trading at two-month lows, which is providing support for precious metal prices. Today, the US Dollar Index was hovering near the 98.25 mark, falling 0.05 or 0.05%. Silver exhibited robust performance following the Silver Institute’s report, which indicated significant industrial demand for the grey metal.
“However, optimism surrounding a Russia-Ukraine peace deal is constraining the upward movement for both precious metals.” Gold and silver prices exhibit volatility in anticipation of the BOJ policy meeting; however, they may sustain their critical support levels of $4,140 per troy ounce and $57.20 per troy ounce, respectively, in the international markets, according to Manoj Kumar Jain. “We anticipate fluctuations in gold and silver prices this week, influenced by the instability of the dollar index, the turbulence in global financial markets, and the upcoming policy meetings of the Bank of England and the Bank of Japan,” he added.