The precious metals are taking a breather after the rally overnight. Gold prices are trading above the key $5,200/oz level in international markets and are rising to three-week highs. Silver too is steady in today’s session after rising above the $87 per troy ounce level.
Gold off 3-week highs
Gold is holding above the key $5,200/oz after some profitbooking. The yellow metal spiked to three-week highs. Pressure from a stronger dollar outweighed support from US tariff uncertainty, and tension between Washington and Tehran continued to impact sentiment.
Speaking on the outlook for gold, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities highlighted that “uncertainty around global trade dynamics, prompting renewed safe-haven buying in bullion.”
Speaking on the MCX levels for gold and the big triggers ahead, he outlined that “Gold has formed a short-term base near Rs 1,55,000/10 gm on MCX and $5,000/oz on CME, and the ongoing tariff adjustments continue to keep economic outlooks fluid. As long as trade policy remains unpredictable, allocation toward gold is likely to stay firm.”
For now, he sees “immediate support near Rs 1,55,000/10 gm, while resistance is placed around Rs 1,62,000/10 gm, with further direction dependent on fresh trade developments.”
Silver steady after sharp drop
The silver prices remained steady around the $87 per troy ounce level. However, prices have dropped more than 2% tending a four-day rally as investors booked profits amid persistent trade uncertainty and heightened geopolitical risks. In the latest developments, global logistics firm FedEx filed a lawsuit seeking a full refund after the US Supreme Court struck down Trump’s emergency tariffs.
Jigar Trivedi, Senior Research Analyst at Indusind Securities believes that “silver rallied on Monday after Trump threatened to lift global tariffs from 10% to 15% in response to the Court’s ruling. The shifting policy stance fueled concerns that existing trade deals could unravel, though major trading partners have so far maintained their agreements with Washington.”
That said, he pointed out that “Trump also warned of steeper duties on countries that “play games” with current trade arrangements. On the geopolitical front, markets remain focused on US-Iran talks scheduled to resume on Thursday. Trump reiterated his preference for a negotiated resolution but cautioned that serious consequences would follow if a nuclear deal is not secured. MCX Silver March prices are likely to drop to Rs 2,61,000/kg during the intraday today.”