Gold and Silver Prices Continue to Fall Amid Profit-Taking
Synopsis
On March 11, gold and silver prices in New Delhi fell as investors took profits, although a weaker US dollar and ongoing geopolitical tensions moderated the decline. This article explores the latest market trends and investor sentiment.
Key Takeaways
Gold and silver prices have declined due to profit-taking.
A weaker US dollar has made bullion cheaper for foreign investors.
Crude oil prices have fallen, impacting inflation concerns.
Geopolitical tensions continue to influence market sentiment.
Short-term volatility exists, but the long-term outlook for silver is positive.
New Delhi, March 11 (NationPress) The prices of gold and silver saw a decline on Wednesday as investors engaged in profit-taking, although a weaker US dollar and persistent geopolitical uncertainties limited the drop.
As of around 11:15 AM, MCX gold futures for April slipped by 0.52% to Rs 1,62,452 per 10 grams. Concurrently, MCX silver futures for May fell by 1.69% to Rs 2,73,150 per kg.
This profit-taking occurred after the MCX gold April futures had surged nearly 2% and the silver May futures had jumped 4% in the previous trading session.
The US dollar weakened by 0.07% to 98.75 cents during the intraday period, rendering dollar-priced bullion more affordable for international investors.
Additionally, crude oil prices dropped below $90 a barrel, alleviating inflation concerns that had previously increased demand for gold as a protective measure against inflation.
The price of Brent crude oil decreased by 0.99% to $86.93 per barrel, while US West Texas Intermediate (WTI) futures fell by 0.75% to $82.82.
Both crude futures had witnessed a dramatic drop of over 11% overnight, marking their steepest single-day decline in four years, after the International Energy Agency recommended a historic release of emergency reserves.
Amidst the fluctuating fortunes of the war, investors were seen booking profits following mixed messages from US President Donald Trump, who hinted that the conflict might be nearing resolution, only for the US and Israel to launch intense airstrikes on Iran later.
Market participants are closely watching the upcoming Personal Consumption Expenditures index set to be released on Friday, which is expected to provide insights into US inflation trends and the potential for Federal Reserve rate cuts.
Despite the short-term volatility, the medium to long-term outlook for COMEX Silver remains positive, according to a market analyst.
"The support levels for MCX Gold are seen at Rs 1,61,800 to Rs 1,60,350, while resistance levels are at Rs 1,64,400 and Rs 1,66,600. For MCX silver, support is at Rs 2,744,000 and Rs 2,68,000, with resistance at Rs 2,81,000 and Rs 2,85,500," the analyst stated.
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Point of View
It's evident that the recent decline in gold and silver prices reflects a broader trend of profit-taking amidst market uncertainties. Investors are keenly observing geopolitical developments and economic indicators, which could significantly influence future price movements.
NationPress
9 May 2026
Frequently Asked Questions
Why did gold and silver prices drop recently?
Gold and silver prices fell due to profit-taking by investors, despite a weaker US dollar and ongoing geopolitical tensions that limited the decline.
What are the current support and resistance levels for gold?
MCX Gold has support at Rs 1,61,800 to Rs 1,60,350 and resistance at Rs 1,64,400 and Rs 1,66,600.
How did crude oil prices impact gold demand?
Crude oil prices falling below $90 a barrel eased inflation concerns, which had previously driven demand for gold as a hedge.
What external factors are affecting the gold market?
Geopolitical uncertainties and economic indicators, such as the upcoming Personal Consumption Expenditures index, are influencing the gold market.
Is the outlook for silver positive despite volatility?
Yes, the medium to long-term outlook for COMEX Silver remains constructive, according to market analysts.
