Gold and silver prices slip amid US-Iran deal hopes - Should you buy on dips?

Gold and silver prices declined in domestic and international markets on Monday, failing to hold gains from the previous session amid optimism over progress in US-Iran nuclear talks and a rebound in the dollar index. The trend remains volatile, according to market experts.

In the international market, gold April futures settled at USD 5,014.50 per troy ounce, down 0.63 per cent. Silver March futures settled at USD 76.555 per troy ounce, lower by 1.81 per cent.

In the domestic market, the gold April futures contract settled at Rs 1,54,760 per 10 grams, down 0.73 per cent. Silver March futures contract settled at Rs 2,39,891 per kilogram, declining 1.83 per cent.

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Safe-Haven Demand Eases

Market participants attributed the fall in prices to easing safe-haven demand following optimism around ongoing talks between the United States and Iran over a nuclear deal. A rebound in the dollar index also weighed on precious metals.

Manoj Kumar Jain said gold and silver were unable to sustain earlier gains due to improved risk appetite in global markets. “The U.S. and Iran talks are going on over the nuclear deal and the possibility of positive developments is easing safe-haven buying for both precious metals,” he said.

He added that Chinese markets remain closed for the week due to the Lunar New Year holidays, leading to lower trading volumes in precious metals, which is also limiting gains.

Supportive Factors Remain

However, Jain noted that certain factors could support prices. “Geo-political risk and cooling-off U.S. inflation could support prices. The U.S. 10-year bond yields also slipped below 4.10 per cent and could also support gold and silver prices,” he said.

He said the market is witnessing very high price volatility in both metals and advised caution.

“We are experiencing very high price volatility in both precious metals, but silver prices could hold their support level of USD 65 per troy ounce and gold prices could also hold their support level of USD 4,770 per troy ounce on a closing basis this week,” Jain said.

Key Technical Levels to Watch

On the outlook for the current week, he said prices are likely to remain volatile. “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, US-Iran talks and geopolitical tensions,” he added.

For the near term, Jain outlined key technical levels. He said gold has support at USD 4,970–4,915 per troy ounce and resistance at USD 5,045–5,080 per troy ounce. Silver has support at USD 74.00–71.20 per troy ounce and resistance at USD 78.00–80.40 per troy ounce.

In the domestic market on MCX, he said gold has support at Rs 1,53,150–1,51,800 per 10 grams and resistance at Rs 1,55,500–1,56,700. Silver has support at Rs 2,34,000–2,28,800 per kilogram and resistance at Rs 2,44,000–2,47,700.

Should You Buy on Dips?

On whether investors should buy on dips, Jain advised a selective approach. “We suggest staying away from taking any trade in silver until markets show stability,” he said.

However, he sees limited intraday opportunity in gold. “Gold can be bought on dips around Rs 1,53,800–1,53,100 zone with a stop loss below Rs 1,52,500 for the upside target of Rs 1,55,000–1,55,800 for strictly intraday trade,” Jain said.

He cautioned that the recommendation is only for short-term traders and not for positional investors, given the ongoing volatility in global cues, including movements in the dollar index, bond yields, and developments in US-Iran negotiations.

Gold and Silver Price Today

Gold and silver prices declined on Tuesday on the MCX amid continued volatility in global cues. Gold April futures were trading at Rs 1,53,760 per 10 grams, down Rs 1,000 or 0.65 per cent from the previous close of Rs 1,54,760.

Silver March futures were trading at Rs 2,35,266 per kilogram, lower by Rs 4,625 or 1.93 per cent compared with the previous close of Rs 2,39,891. Both precious metals remained under pressure in early trade.