On February 24, gold and silver prices experienced a drop as a stronger US dollar impacted the precious metals market. By approximately 5 pm, the Multi Commodity Exchange (MCX) indicated that gold was priced at Rs 1,60,696 per 10 grams, reflecting a decrease of Rs 902 or 0.56%. Silver, on the other hand, witnessed a more pronounced decline, declining by Rs 5,010 or 1.89% to stand at Rs 2,60,323 per kilogram.

The ongoing uncertainty surrounding international tariffs and geopolitical tensions, especially between the United States and Iran, has contributed to investor caution in the bullion market.

Gold Shows Signs of Recovery

Despite the recent downturn, experts suggest that gold is exhibiting early indications of recovery following a notable correction the previous week. The renewed buying activity at lower prices has led some investors to perceive value in the yellow metal.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, noted that the renewed interest is driving a gradual recovery in gold’s price. Although fluctuations are expected in the short term, the overall market sentiment towards gold appears to be stabilizing positively.

Silver Markets React Amid Price Drops

Silver, known for its volatility compared to gold, has begun to bounce back from lower price levels. The movements in silver prices are influenced by both investment demand and industrial requirements, which make them sensitive to shifts in economic conditions.

Kamboj stated that the rebound in silver prices is aligned with gold, suggesting an improvement in both risk appetite and anticipated industrial demand. While short-term volatility is likely to persist, there are indications that buyers are returning to the silver market.

Market Analysts Monitor Key Price Levels

Investors are paying close attention to critical technical levels to determine the future direction of bullion prices. Experts observe that gold is currently trading within a defined range after recent retractions from its peak.

Ponmudi R, CEO of Enrich Money, remarked that the MCX gold futures are fluctuating in the range of Rs 1,55,000 to Rs 1,62,000, following a period of consolidation after falling from recent all-time highs close to Rs 1,80,000 to Rs 1,81,000. The presence of significant buying interest at lower price points has been observed, particularly between Rs 1,45,000 and Rs 1,55,000, where sustained support is vital for potential upward movements.

Silver Outlook Remains Positive Despite Volatility

Silver prices are also seen fluctuating within a broad range after a notable correction from previous peaks. Although the long-term outlook remains optimistic, movements in the short term may continue to show variability. Ponmudi indicated that the MCX silver futures are currently traded between Rs 2,60,000 and Rs 2,80,000.

Key support levels are anticipated to be instrumental in determining the next market movement, with a stable hold above current regions potentially leading to recovery toward Rs 3,00,000 to Rs 3,25,000. However, a decisive breakdown below these levels could intensify downward pressure.

Investor Considerations in Current Market Conditions

At this juncture, gold and silver continue to face pressure largely due to movements in global currencies, specifically the strength of the US dollar. Nevertheless, ongoing buying activity at lower levels and a supportive long-term structure indicate that investors still view bullion as a favorable hedge against ongoing uncertainty.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share