Gold and Silver Prices Decline as US Dollar Strengthens
Synopsis
On February 24, 2023, gold and silver prices fell as the US dollar gained strength and profit-taking set in following significant previous session gains. Market watchers are keeping an eye on tariff uncertainties and US-Iran negotiations.
Key Takeaways
Gold prices dropped by 0.58% to Rs 1,60,664 per 10 grams.
Silver prices fell by 0.33% to Rs 2,64,450 per kg.
The US dollar index increased by 10.19% to 97.89.
Geopolitical tensions are expected to support gold prices.
Market liquidity improved with the reopening of China's precious metals futures market.
Mumbai, Feb 24 (NationPress) The prices of gold and silver experienced a decline on Tuesday, influenced by a rise in the US dollar and profit-taking after substantial gains in the previous session.
Investors are closely monitoring tariff uncertainty and the ongoing US-Iran peace negotiations, which have limited the fall in prices.
As of around 10:50 am, MCX gold futures for April dropped by 0.58% to Rs 1,60,664 per 10 grams on an intraday basis. Concurrently, MCX silver futures for March fell by 0.33% to Rs 2,64,450 per kg.
On the Comex exchange, gold futures for April delivery slid by 1.1% to $5,170.70 per ounce, while spot gold fell by 1.5% to $5,150.38, retreating from a three-week peak earlier in the day. Spot silver also witnessed a significant drop, plunging by 3.1% to $85.50 per ounce after reaching a two-week high in the previous trading session.
The dollar index surged by 10.19% on an intraday basis to 97.89, making bullion more costly for holders of other currencies.
Analysts noted that uncertainty surrounding tariffs, particularly following the Supreme Court's decision against President Donald Trump's emergency tariffs, will enhance gold's attractiveness as a hedge against geopolitical risks. Trump has cautioned nations against withdrawing from trade agreements, warning that such moves could lead to increased tariffs.
Furthermore, analysts indicated that escalating geopolitical tensions, particularly Trump's 10-day ultimatum for a 'meaningful deal' with Iran, are expected to support gold prices in the near term.
In China, the precious metals futures market resumed activity following the Lunar New Year holiday, enhancing global liquidity conditions. Analysts highlighted that silver was trading at a significant premium to Western spot prices, a reflection of tight local supply and strong industrial demand.
The medium to long-term outlook remains positive, buoyed by industrial demand and structural supply constraints, despite ongoing volatility, analysts added.
According to an analyst, 'Gold has support at Rs 1,60,600 and Rs 1,58,800, while facing resistance at Rs 1,63,300 and Rs 1,65,000. MCX silver has support at Rs 2,61,000 and Rs 2,56,600, with resistance levels at Rs 2,70,000 and Rs 2,78,000.
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Point of View
It’s crucial to reflect on the current dynamics affecting gold and silver prices. The interplay of the dollar's strength and geopolitical uncertainties is pivotal. Investors must remain vigilant as these factors can significantly influence market trends in the short term.
NationPress
8 May 2026
Frequently Asked Questions
Why did gold and silver prices fall?
Gold and silver prices fell due to a rise in the US dollar and profit-taking after previous gains.
What is the current price of gold?
As of now, MCX gold futures are priced at Rs 1,60,664 per 10 grams.
How does the US dollar affect gold prices?
A stronger US dollar makes gold more expensive for foreign buyers, reducing demand and leading to a price drop.
What are the factors influencing gold prices now?
Key factors include tariff uncertainties, US-Iran negotiations, and overall market demand.
What support levels should investors look for in gold?
Investors should watch for support at Rs 1,60,600 and Rs 1,58,800.
