Comex Gold and Silver Prices Decline on Profit Booking and Strengthening US Dollar

Gold and Silver Prices Decline Amid Profit Booking and US Dollar Rebound

In Tuesday's trading session, gold and silver prices declined due to profit booking following a recent run-up and a rebound in the US dollar. The April futures contract on Comex fell by $116 per troy ounce to a day's low of $5,109 on 24 February. Silver prices also traded lower, with the March silver futures contract on Comex falling by $2 per troy ounce to reach a day's low of $84.50.

Silver has been experiencing a four-day winning run, resulting in a cumulative gain of 18% and a 9.51% gain so far in November. From the month's lows, silver prices have recovered by 35%. However, if silver closes in the red, it will end the white metal's winning streak.

Despite the decline in gold and silver prices, ongoing US tariff uncertainty and rising tensions in the Middle East are likely to keep safe-haven assets on investors' radar. US President Donald Trump warned countries against backing away from recently negotiated trade deals, while FedEx filed a lawsuit seeking a full refund after the US Supreme Court struck down President Trump's emergency tariffs.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In the domestic market, the April gold futures contract on MCX fell by ₹3,313 per 10 grams to the day's low of ₹1,58,285 per 10 grams, while the March silver futures contract dropped by ₹11,834 per kilogram to ₹2,53,499. Looking at monthly performance, silver is down 12.17% in February so far, while gold has remained in the green, gaining 6.18% during the same period.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, gold traded in a range with minor weakness near ₹1,60,650 as CME Gold faced resistance around $5,175. Optimism over possible US-Iran talks on Thursday has slightly cooled the risk premium, keeping prices capped at higher levels. Support is placed near ₹1,58,000 for the April contract, while resistance remains around ₹1,62,500. Volatility is expected to stay elevated given ongoing geopolitical developments, as any escalation or breakdown in talks could quickly revive safe-haven buying.

The US dollar index rebounded by 0.25% to 97.98 against the basket of currencies.