Gold and silver prices rose after consecutive sessions of decline, amid renewed buying interest due to global macro-economic factors
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MUMBAI — Gold and silver prices rose on Wednesday after two consecutive sessions of decline, amid renewed buying interest due to global macro-economic factors.
Easing US-Iran tensions due to progress in negotiations and a firmer US dollar capped gains by weighing on safe-haven demand. Thin liquidity because of Lunar New Year holidays in several Asian markets also acted as headwinds on the rally, market participants said.
MCX gold April futures gained 1.24 per cent to INR 1,53,294 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 3.81 per cent to INR 2,37,490 per kg.
In international markets, gold prices slipped below $4,900, while declining Treasury yields offered limited support and kept sentiment cautious across Commodities.
Iran and the US reached an understanding on key guiding principles to frame future nuclear negotiations, during talks in Geneva, raising hopes of diplomatic progress.
Iranian Foreign Minister Abbas Araghchi described the discussions as more constructive than before, with both sides planning to draft and exchange texts for a potential agreement, though he cautioned that this did not mean a final deal is imminent.
Araghchi, however, added that the United States should immediately stop the threat of using force against Iran, according to multiple reports.
Despite the price decline, gold ETF holdings continued to edge higher, indicating underlying institutional interest, while physical demand remained resilient in India and China, with India’s January imports rising, said Manav Modi, Commodities Analyst, Motilal Oswal Financial services Ltd.
Analysts said the volatility in silver stems from a demand‑supply mismatch and profit‑booking after steep gains over the past year, even as gold remains elevated compared with recent weeks.
The dollar index surged 0.10 per cent to 97.25, making greenback-priced bullion more expensive for other currency holders.
"Gold has support at INR 1,49,800 and INR 1,47,700 while resistance at INR 1,53,150 and INR 1,55,500. MCX silver has support at INR 2,24,400 and INR 2,18,800, and resistance is at INR 2,32,200 and INR 2,36,000," an analyst said.