Gold and silver prices on India’s Multi Commodity Exchange (MCX) opened lower in Tuesday’s trading session, as investors booked profits amid subdued physical demand. At approximately 9:10 AM, MCX Gold February 2025 futures were trading 0.48% lower at ₹1,33,492 per 10 grams, while MCX Silver March 2025 futures declined by 1.64% to ₹1,94,657 per kilogram.
This domestic pullback contrasts with the trend in international markets, where spot gold hovered near record levels around $4,300 per troy ounce, buoyed by a weakening US dollar. The greenback’s slide to a near two-month low, as analyzed in depth by Reuters Market News, has provided significant support to dollar-denominated bullion prices globally.
Key Drivers Behind Today’s Movement
Analysts attribute the day’s softness primarily to profit-booking following a strong rally. Just a day earlier, MCX gold futures had scaled a historic peak of ₹1,35,496. The lack of fresh domestic triggers and softer spot demand further prompted the correction.
Market focus is now squarely on the upcoming US Nonfarm Payrolls data. This report is a critical gauge of the American labor market’s health and will heavily influence the Federal Reserve’s interest rate trajectory. According to the CME FedWatch Tool, market participants are currently pricing in a high probability of a rate cut by the Fed in the coming months, a fundamental pillar supporting gold’s medium-term outlook.
Expert Analysis: Volatility and Levels to Watch
Financial experts caution that prices are likely to remain volatile this week, reacting to a slew of key events. These include major U.S. economic data releases, policy decisions from the Bank of England (BoE) and the Bank of Japan (BOJ), and geopolitical developments.
“The medium-term outlook for gold remains constructive, supported by expectations of a shift to an accommodative monetary policy cycle and persistent geopolitical uncertainties,” said Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart. “We advise accumulating gold on dips around ₹1,33,600, with a stop loss at ₹1,32,800 for an initial target of ₹1,35,000.”
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that the February gold contract could see intraday weakness toward ₹1,33,000 per 10 grams. Traders are advised to monitor key technical levels closely.
Critical Support & Resistance Levels:
Gold Support: ₹1,33,500 & ₹1,32,800 | Resistance: ₹1,34,850 & ₹1,35,500
Silver Support: ₹1,96,200 & ₹1,94,400 | Resistance: ₹2,00,000 & ₹2,01,400
Verdict: Is It Time to Buy?
The current dip appears to be a technical correction within a broader bullish trend driven by central bank policy expectations and safe-haven demand. For investors with a medium- to long-term horizon, this consolidation may present a strategic opportunity to accumulate gold. However, short-term traders should brace for continued volatility and employ strict risk management, as highlighted in this guide to navigating commodity market volatility from Investopedia.