Mumbai, February 16: On the first trading day of the week, a decline was observed in the prices of precious metals, including gold and silver, primarily due to the strengthening of the dollar following positive changes in U.S. inflation data.
During the trading session, gold for April delivery fell by over 0.50% to ₹1,54,125 per 10 grams, marking the lowest level of the day. Meanwhile, silver for March delivery dropped nearly 2% to reach a low of ₹2,35,208 per kilogram.
As of the time of writing (2:47 PM), gold for April expiry was trading at ₹1,55,500 per 10 grams, down by 0.25% or ₹395. Silver for March expiry was trading at ₹2,40,957 per kilogram, reflecting a decline of 1.39% or ₹3,403.
The dollar index rose by 0.10% to 97, following a softening in the U.S. Consumer Price Index (CPI) in January. This increase was supported by strong employment figures, indicating underlying economic strength. A stronger dollar makes gold and silver, priced in dollars, more expensive for investors in other countries, thereby affecting demand.
In January, the U.S. CPI rose by 0.2%, down from a 0.3% increase in December. The annual inflation rate in January stood at 2.4%, lower than the previous month’s 2.7%. Strong employment data and a balanced inflation rate may provide the U.S. Federal Reserve with the opportunity to keep interest rates unchanged.
Analysts suggest that gold may find support at levels of ₹1,54,000 and ₹1,53,150, while resistance could be seen at ₹1,56,800 and ₹1,58,200. For silver, support levels are at ₹2,38,800 and ₹2,32,000, with resistance at ₹2,49,100 and ₹2,55,000.
However, experts believe that geopolitical tensions, central bank purchases, and investors seeking safe-haven assets still indicate a positive long-term outlook for precious metals.
In the international market, Comex silver is trading in the range of $73 to $84, having previously fallen from a record high of $121. The recent decline has created short-term pressure.
Investors are now awaiting the minutes from the Federal Open Market Committee (FOMC) meeting, preliminary U.S. GDP figures, and PCE inflation data for indications on the direction of interest rates.
Additionally, the market is closely monitoring the impact of U.S.-Iran talks and efforts to resolve the Russia-Ukraine conflict on crude oil prices.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
