New Delhi: Gold and silver prices posted strong gains on Tuesday as the US dollar softened, and energy prices fell on signals from President Donald Trump that the conflict in the Middle East could be nearing an end.
MCX gold April futures gained 1.15 per cent to Rs 1,62,150 per 10 grams around 12.15 pm on an intraday basis. Meanwhile MCX silver May futures gained 3.68 per cent to Rs 2,77,000 per kg.
In international markets, spot silver climbed toward $82.50 per ounce, while spot gold rose to $5,082.51 per ounce.
The recovery followed US President Donald Trump’s remarks suggesting potential de‑escalation with Iran, though he warned US military action could escalate if tanker traffic through the Strait of Hormuz remained blocked.
Analysts said that de-escalation of conflict could lead to lower energy costs, which could ease fears of inflation, potentially reducing chances of central banks raising interest rates, in turn supporting gold, which does not offer yields.
Oil prices declined sharply on Tuesday, as Brent futures declined as much as 10.85 per cent to an intraday low of $88.22 per barrel from the previous close of $98.96 per barrel. Around 11 am, they were trading at $92.50, down 6.44 per cent.
The dollar index dipped 0.44 per cent to 98.74, making greenback-backed bullion cheaper for buyers in overseas currencies.
Investors remain keen on cues from the US consumer price index for February, due on Wednesday, and the Personal Consumption Expenditures index, due on Friday to gauge US inflation and chances of Fed rate cuts.
Majority of traders currently expect the Fed to keep interest rates unchanged at the conclusion of its two-day policy meeting on March 18, according to several market watch tools.
“Gold has support at Rs 1,58,000 zone while resistance at Rs 1,75,000 and Rs 1,80,000 levels. MCX silver has support at Rs 2,50,000 and Rs 2,60,000, and resistance is at Rs 2,80,000 and Rs 3,00,000,” an analyst said.
(IANS)
