Gold and silver prices declined on Thursday at India’s Multi-Commodity Exchange (MCX) amid expectations that the US Federal Reserve may cut interest rates in the coming days.
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MCX Gold April futures fell by 0.40 per cent, or 650 rupees, bringing the price to ₹1,55,116 per 10 grams. MCX Silver futures declined by 0.75 per cent, or 1,800 rupees, reaching ₹2,42,439 per kilogram. In the international market, spot gold prices also fell to $4,930 per ounce.
Investor sentiment and market factors
According to a report by Augmont Bullion published on February 18, the recent decline in gold prices is linked to a reduced investor demand for safe-haven assets. Geopolitical tensions have somewhat stabilised in recent sessions, lowering the urgency among investors to buy gold as a defensive asset. Profit-taking after the recent rally has also contributed to downward pressure on prices.
At the same time, the strengthening of the US dollar has had a significant impact. The dollar index reached 97.73 on Thursday, the highest in the past week, which negatively affected both gold and silver prices.
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Geopolitical developments continue to influence the market
Despite the current decline, geopolitical factors still play a role in gold’s appeal as a safe investment. Renewed nuclear discussions between the US and Iran and ongoing Russia-Ukraine talks continue to support gold’s status as a defensive asset. However, currency movements, particularly the strengthening dollar, are currently exerting a greater influence on prices than geopolitical developments, according to the report.
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