MCX gold falls to ₹1.51 lakh/10 grams; silver tanks 4% on strong dollar, easing geo-political tensions

At around 3:07 pm, the yellow metal contract was trading 1.34% or ₹2,080 lower at ₹1,52.680 per 10 grams, due to easing safe-haven demand amid improving geopolitical sentiment and a strong US dollar.

In the international market, COMEX gold fell 3.39% to the session’s low of $4,875.20 per ounce in New York, amid low trading volumes as several Asian markets, including China, remained closed due to the Lunar New Year, especially as US markets remained closed on Monday for the President's Day holiday. At the time of writing, it stood at $4,938.20 per ounce, down 2.14%.

Similarly, on the MCX, silver futures for expiry in March fell as much as ₹10,539 or 4.39% to an intraday low of ₹2,29,352 per kilogram.

At the time of writing, the contract was trading 2.72% or ₹6,527 lower at ₹2,33,364 per kilogram, tracking weak global trends and low liquidity amid market holidays across major Asian economies.

Globally, COMEX silver plunged as much as 7% to stand at the session’s low of $72.505 per troy ounce. It was at $74.475 per ounce, reflecting a 4.48% decline at the time of writing.

Prices of the precious metals fell on Tuesday, as investors booked profit amid a stronger US dollar and shifting interest-rate expectations from the US Federal Reserve.

Traders will focus on the release of the Federal Open Market Committee meeting minutes from January and the release of the US Personal Consumption Expenditures Price Index data to gain more clarity on interest rate expectations.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.23% higher at 97.14.

Investor sentiment for precious metals also cooled as geopolitical tensions eased, as the second round of US-Iran nuclear talks began in Geneva, parallel to the third round of talks between Russia and Ukraine.