Are Precious Metal Prices Falling Due to Profit Booking and a Stronger Dollar?
Synopsis
On February 10, gold and silver prices saw a slight decrease influenced by a stronger dollar and profit booking, despite geopolitical tensions providing medium-term support. Investors are eyeing upcoming economic data for insights into future market trends.
Key Takeaways
Gold prices fell by 0.33% to Rs 1,57,550 per 10 grams.
Silver prices declined by 1.92% to Rs 2,57,567 per kg.
The dollar index rose to 97.01, making bullion more expensive for overseas buyers.
Analysts anticipate at least two rate cuts this year, which could support bullion prices.
Geopolitical tensions continue to influence market dynamics.
New Delhi, Feb 10 (NationPress) Gold and silver prices experienced a slight decline on Tuesday, primarily influenced by a stronger dollar and profit-taking activities, despite ongoing geopolitical uncertainties that provide medium-term support to these precious metals.
The February futures for MCX gold fell by 0.33%, settling at Rs 1,57,550 per 10 grams during intra-day trading. In a similar vein, MCX silver for March futures saw a 1.92% decrease, priced at Rs 2,57,567 per kg.
At one point, silver dipped over 2% to reach a day’s low of Rs 2,57,100 per kg, while gold prices fell by 1.3% to Rs 1,56,001 per 10 grams, before witnessing a slight recovery.
The dollar index increased to 97.01 on Tuesday, up from 96.82 in the previous session, making dollar-denominated bullion slightly more expensive for international buyers.
Market analysts are currently anticipating at least two cuts of 25 basis points in interest rates this year, which is generally favorable for bullion as it signals a more relaxed monetary policy. Despite some signs of diplomatic progress, tensions between the US and Iran are still elevated, with Washington advising US-flagged ships to steer clear of Iranian waters.
The ongoing uptrend in COMEX Gold remains robust, with the recent pullback attributed to profit-taking and healthy price adjustments, according to market participants.
There is notable buying interest in the $65–$70 support range for COMEX Silver, coinciding with previous swing lows and long-term trend support, they added.
“Gold is supported at Rs 1,56,600 and Rs 1,54,800 levels, while resistance is seen at Rs 1,59,100 and Rs 1,60,000. Silver sees support at Rs 2,55,500 and Rs 2,48,800, with resistance at Rs 2,68,000 and Rs 2,74,000,” stated an analyst.
Market observers noted that persistent supply deficits and steady industrial demand underpin a bullish outlook for silver, while ongoing safe-haven demand and stable central bank purchases bolster gold's long-term prospects.
Investors are keenly awaiting the non-farm payrolls report for January and upcoming inflation data later this week for additional insights on the US Fed’s interest rate direction.
aar/na
Point of View
It's essential to recognize the complex interplay of market forces at work. While profit booking and a stronger dollar have momentarily impacted gold and silver, ongoing geopolitical tensions and potential interest rate cuts may influence future trends. At NationPress, we remain committed to delivering timely and accurate information to help our audience make informed decisions.
NationPress
10 May 2026
Frequently Asked Questions
Why did gold and silver prices decline on February 10?
The decline was mainly due to profit booking and a stronger dollar, which made dollar-backed bullion more expensive for international buyers.
What are the current support and resistance levels for gold and silver?
Gold has support at Rs 1,56,600 and Rs 1,54,800, with resistance at Rs 1,59,100 and Rs 1,60,000. Silver has support at Rs 2,55,500 and Rs 2,48,800, with resistance at Rs 2,68,000 and Rs 2,74,000.
What geopolitical factors are affecting precious metal prices?
Tensions between the US and Iran, alongside ongoing geopolitical uncertainties, continue to provide medium-term support for gold and silver.
