Gold, Silver Prices Today: Both Precious Metals Trade Up After Sliding For Two Sessions

Gold and silver prices rose in the domestic markets after falling for two consecutive sessions. Investors continued to focus on key incoming data from the US to gauge demand and supply pressures, even as demand for safe-haven assets reduced.

On the MCX, gold futures for March delivery were trading 1.3 per cent higher at Rs. 1.51 lakh for 10 grams. Meanwhile, silver futures for March delivery were trading 3 per cent higher on the MCX, at Rs. 2.29 lakh per kg.

Expectations of geopolitical tensions easing after positive developments in the Iran-US talks reduced investors’ focus on safe-haven assets such as gold. The US and Iran said that progress has been made in their nuclear talks in Geneva, with Iran’s Foreign Minister Abbas Araghchi saying that the two sides have reached an “understanding” to guide talks. However, the deal might not be imminent, he said.

Meanwhile, Ukraine and Russia also concluded the first two days of their peace talks in Geneva, mediated by the US. US President Donald Trump has pressed Kyiv to reach a deal and act fast to end the ongoing four-year conflict between the two countries.

“Traders are taking profits following record-breaking rallies, and market participants are closely watching key economic data and central bank messages for market direction,” Aksha Kamboj, vice president, India Bullion & Jewellers Association (IBJA), said.

On the international markets, gold prices fell below $5,000, but traded nearly 1 per cent higher than the previous session at $ 4,953.70. Meanwhile, silver prices were trading at $75.70, nearly 3 per cent up from the previous close.

The slight rebound in precious metals prices was led by investors looking to buy at dips as overall uncertainty about the global economy persisted.

Investors are now waiting for the US Federal Open Market Committee’s January meeting minutes, which are scheduled to be released on February 18. While the Fed chose to maintain a status quo on interest rates at the last meeting, investors will look out for any guidance on future rate cuts by the panel. Markets are currently expecting a rate cut in June, with some believing more rate cuts could come during the year if inflation remains below the Fed’s 2 per cent target.

After the FOMC minutes are out, investors will shift their focus to US economic data such as the Personal Consumption Expenditures report for December, and Gross Domestic Product data, both of which are due on February 20.

Meanwhile, the US dollar index tracking the dollar against its five major peers rose marginally to 97.21. The rupee fell against the dollar on February 18, trading 7 paise below at 90.70.

“Despite short-term outflows or profit-taking, we still see longer-term fundamental support due to macro drivers like safe-haven demand and central bank buying,” Jigar Trivedi, senior research analyst at Indusind Securities, formerly Reliance Securities, said.