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Gold Pauses Near Record Levels as Strong Dollar Pressures Prices, While Fed Rate Cut Hopes Keep Outlook Positive
Gold price today showed weak movement on the MCX as traders sold gold to book profits. This selling came after gold prices reached record high levels in the last session. MCX gold futures for February delivery slipped 0.12% and traded near Rs. 1,41,863 per 10 grams in early trade. Silver prices stayed strong. MCX silver futures for March delivery rose 0.20% to Rs. 2,69,507 per kilogram.
The fall in gold prices came after a sharp rise on Monday. Gold prices touched an all-time high of Rs. 1,42,500 per 10 grams on the MCX. Silver also hit a record high of Rs. 2,71,352 per kilogram. After such strong gains, many traders chose to sell and take profits. This move caused gold prices to fall slightly today.
Profit Booking After Record Highs
A rise in the US dollar also affected the gold price today. The dollar index moved higher and stayed near a one-month high. When the dollar becomes stronger, gold turns expensive for buyers using other currencies. This usually reduces buying interest for a short time. As a result, gold prices faced pressure in the morning session.
Even after the fall, gold prices remain close to record levels. International gold prices also dipped slightly after crossing $4,600 per troy ounce for the first time. Experts say this fall looks like a short break after a strong rally, not a major trend change.
Dollar Strength Puts Pressure on Gold
Global tension continues to support gold and silver prices. The Russia-Ukraine war remains a big concern for markets. Unrest in Iran and new trade threats from the United States have also increased uncertainty. In such situations, investors prefer safe assets like gold and silver. This safe-haven demand keeps prices supported even during small corrections.
Hopes of interest rate cuts in the United States also support gold price today. Many global market experts expect the US Federal Reserve to cut interest rates later this year. Lower interest rates reduce returns from fixed income options. This situation usually increases demand for gold as a store of value.
Global Risks Keep Outlook Positive
Silver prices continue to show strength. Apart from being a safe asset, silver also has strong industrial demand. This mix supports silver prices and helps them stay firm even when gold prices fall slightly. The recent rise in silver prices shows strong interest from investors.
Experts say that gold price may remain unstable in the short term. Price movement may depend on global news, currency trends, and economic data. For long-term investors, gold still looks strong. Many experts suggest buying gold in small amounts during price dips instead of buying at high levels.
In Indian cities, gold prices remain high in the physical market. Rates for 24-carat and 22-carat gold stay close to record levels. Jewellery buyers may feel the pressure of high prices, while investors may wait for a small fall to enter the market.
Overall, gold price today reflects a balance between profit booking and strong long-term support. Short-term swings may continue, but safe-haven demand keeps gold and silver in focus.