Gold Price Slips as Profit Booking Rises Amid Strong Dollar and Higher Bond Yields

Advertisment

Gold prices today moved down in the Indian market as traders decided to book profits after recent price gains. Prices slipped in early trade on Thursday as the US dollar became stronger and bond yields moved higher. 

These factors reduced demand for gold and silver in the short term. Market mood stayed cautious as investors waited for fresh signals from global economic data.

On the Multi Commodity Exchange, gold February futures traded near Rs. 1,37,663 per 10 grams, showing a fall of around 0.25% in the morning. Silver March futures also traded lower near Rs. 2,49,779 per kilogram. Both metals faced selling pressure after rising strongly in recent sessions.

Advertisment

Profit Booking and Strong Dollar Impact


Profit booking remained the key reason behind the fall in gold price today. Many traders chose to lock in gains at higher levels. The US dollar index stayed close to a two-week high. A stronger dollar makes gold more costly for buyers outside the United States. This usually reduces demand in global markets. US bond yields rose, which made gold less attractive since it does not give interest.

In the last trading session, gold prices fell by nearly one percent, while silver prices dropped even more. Still, gold avoided a sharp fall due to steady safe demand. Many investors continue to prefer gold during uncertain global conditions.

Recent data from the United States showed fewer job openings. This raised hopes that the US Federal Reserve may cut interest rates later this year. Lower interest rates often support gold prices because holding gold becomes cheaper. Markets expect two rate cuts by the Fed this year, which helped limit the fall in gold prices.

Advertisment

Key Support and Resistance Levels


Experts shared key price levels for gold and silver. Gold has support near Rs. 1,37,200 and Rs. 1,36,000 per 10 grams. Resistance stands near Rs. 1,38,800 and Rs. 1,39,500. Prices may fall more if gold moves below support levels. Buying interest may return if prices cross resistance.

Silver also has important levels to watch. Support lies near Rs. 2,46,600 and Rs. 2,42,000 per kilogram. Resistance stands near Rs. 2,54,000 and Rs. 2,58,800. Analysts advised traders to stay cautious and use stop losses during volatile sessions.

Also Read – Gold Rises 0.2% on MCX to Rs. 1,38,392; Silver Jumps Over 1% Amid Strong Demand and Global Tensions 

Advertisment

Global and Domestic Market Outlook


Gold has been the most expensive metal in the global market, reaching a price of about $2,420 per ounce. The dollar's strength and increased bond yields caused prices to decline. However, the demand for safe investments remained high due to concerns about world economies and the political situation. All these circumstances supported gold to remain firm around the important levels.

In Indian cities, gold prices remained close to record highs despite the fall in futures. Rates stayed around Rs. 1,38,000 to Rs. 1,39,000 per 10 grams for 24 carat gold. Silver prices also stayed firm above Rs. 2.5 lakh per kilogram on average.

Overall, gold price today shows a slow and steady phase after strong gains. Profit booking remains active near higher levels, while global cues guide short-term movement. Experts advised watching key price levels and upcoming US data for the next move in precious metal markets.

Advertisment