Gold and Silver Prices Under Pressure Amid Profit Taking and Geopolitical Tensions
Synopsis
Gold and silver prices have pulled back slightly as investors engage in profit-taking, although geopolitical tensions and a weakening US dollar are providing some support. Experts suggest volatility may continue, urging investors to strategically manage their positions.
Key Takeaways
Gold and silver prices are experiencing slight declines due to profit booking.
Geopolitical tensions and a falling US dollar limit the drop.
Medium- to long-term outlook for precious metals remains bullish.
Support and resistance levels for gold and silver are crucial for traders.
Volatility is expected in the market, urging strategic profit-taking.
New Delhi, Feb 26 (NationPress) Gold and silver prices saw a slight decrease on Thursday due to profit-taking by investors. However, the rise in geopolitical tensions and a falling US dollar helped to limit the decline.
April futures for gold on MCX dropped by 0.25 percent to Rs 1,60,741 per 10 grams during intraday trading. In contrast, March futures for silver on MCX fell by 1.16 percent to Rs 2,65,200 per kg.
In the previous trading session, the April gold contract and March silver contract had experienced gains of 0.74 percent and 3 percent, respectively, leading to some profit booking thereafter.
The US dollar continues to weaken amid ongoing trade uncertainties stemming from varying perspectives on tariffs from the US Supreme Court and President Donald Trump, who maintains that tariffs are a key component of his trade policy.
The US imposes a 10 percent tariff on specific imports, with rates expected to escalate to 15 percent or more for certain nations, creating uncertainty around US tariffs and ongoing trade talks that are bolstering demand for precious metals.
The dollar index dipped by 0.13 percent to 97.58, making dollar-denominated gold more affordable for international buyers.
Analysts have noted that the evolving situation between the US and Iran, with a third round of nuclear discussions scheduled in Geneva on February 27 amidst increased US military presence in the Middle East, is driving safe-haven demand.
The medium- to long-term outlook for precious metals remains positive, as COMEX Gold is trading within a $5,100–$5,300 consolidation band following recent fluctuations, according to analysts.
For COMEX silver, a sustained recovery above $92–$96 could reignite momentum towards the $100–$105 range, potentially retesting previous highs, as noted by market participants.
According to an analyst, gold has support levels at Rs 1,60,000 and Rs 1,57,700, while resistance levels are at Rs 1,62,500 and Rs 1,64,000. For MCX silver, support is at Rs 2,63,600 and Rs 2,58,800, with resistance at Rs 2,74,000 and Rs 2,80,000.
Market participants anticipate potential volatility in gold and silver prices throughout the week, advising investors to take profits at higher levels and await corrective dips for new long positions.
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Point of View
It is evident that profit booking is a strong influence, but external factors like geopolitical tensions and currency movements play a crucial role. A cautious approach for investors is advised as the market remains volatile.
NationPress
6 May 2026
Frequently Asked Questions
What caused the recent decline in gold and silver prices?
The recent decline is primarily attributed to profit-taking by investors, although geopolitical tensions and a weakening US dollar have helped to limit the drop.
What are the current support and resistance levels for gold?
Gold has support at Rs 1,60,000 and Rs 1,57,700, while resistance is at Rs 1,62,500 and Rs 1,64,000.
How do geopolitical tensions affect precious metals?
Geopolitical tensions often increase safe-haven demand, which can support prices for precious metals like gold and silver.
What is the outlook for gold and silver prices in the near future?
The medium- to long-term sentiment for precious metals remains bullish, with potential for volatility in the short term.
Why is the US dollar's performance important for gold and silver?
A declining US dollar makes dollar-denominated gold and silver cheaper for overseas buyers, often boosting demand.
