Gold, silver prices slip on profit booking as stronger US dollar weighs

Gold and silver prices declined on Tuesday as investors booked profits following sharp gains in the previous trading session while a stronger US dollar added further pressure on bullionOn the Multi Commodity Exchange MCX gold April futures slipped 058 per cent to Rs 160664 per 10 grams in intraday trade around 1050 am Silver March futures also fell 033 per cent to Rs 264450 per kgThe decline comes after a strong upward movement in precious metals prompting traders to lock in gains amid evolving global cuesGlobal trends weigh on bullion pricesIn international markets gold and silver also witnessed notable corrections On Comex gold futures for April delivery dropped 11 per cent to USD 517070 per ounce while spot gold declined 15 per cent to USD 515038 after touching a threeweek high earlier in the daySilver prices saw sharper losses with spot silver plunging 31 per cent to 8550 per ounce following a twoweek high in the previous sessionA key factor behind the decline was the strengthening of the US dollar The dollar index surged 1019 per cent on an intraday basis to 9789 making gold and silver more expensive for holders of other currencies and thereby reducing demandGeopolitical developments limit downsideDespite the fall analysts believe that geopolitical factors are helping limit deeper losses in gold prices Uncertainty surrounding trade tariffs particularly after a US Supreme Court ruling against emergency tariffs imposed under former US President Donald Trump continues to support goldrsquos appeal as a safehaven assetAdditionally ongoing tensions involving the US and Iran including a reported 10day deadline for a meaningful deal are contributing to nearterm support for bullion pricesMarket participants are closely monitoring these developments as any escalation could drive renewed demand for safehaven investments like goldOutlook remains positive despite volatilityAnalysts maintain that the medium to longterm outlook for gold and silver remains constructive supported by strong industrial demand and structural supply constraintsIn China the reopening of the precious metals futures market after the Lunar New Year has boosted global liquidity Silver in particular is trading at a premium to Western spot prices reflecting tight supply conditions and robust industrial demandFrom a technical perspective gold is expected to find support at Rs 160600 and Rs 158800 with resistance levels seen at Rs 163300 and Rs 165000 For silver support is placed at Rs 261000 and Rs 256600 while resistance is likely at Rs 270000 and Rs 278000Overall while shortterm fluctuations continue due to profit booking and currency movements the broader trend for precious metals remains resilientWith inputs from IANS