Gold and silver prices fall: Will weekly gains hold against 1‑month losses after Trump's warning?

Gold and silver prices rose on Wednesday amid hopes of de-escalation in the Iran conflict and profit booking in the US dollar index. Experts said trends remain volatile, and investors are advised to be cautious with fresh long positions.

Market Data: Gold and Silver Futures

According to market data, Gold 2 April futures were trading at Rs 1,47,500, down Rs 2,604 or 1.73 per cent on the day, but up Rs 11,526 or 8.24 per cent for the week.

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Over the past month, gold futures declined by Rs 16,189 or 9.93 per cent. Silver 5 May futures were trading at Rs 2,31,009, down Rs 12,492 or 5.13 per cent on the day, up Rs 7,359 or 3.26 per cent for the week, and down Rs 36,503 or 13.65 per cent over the month.

Expert View

Expert Manoj Kumar Jain said, “Gold and silver extended their gain amid de-escalation hopes of the Iran war and profit taking in the dollar index. Trend volatile.”

Gold Slips After Trump’s Remarks

Gold prices reversed course on Thursday, falling more than 1 per cent after a four-day winning streak, following remarks by US President Donald Trump on continuing military action in Iran. Spot gold fell 1.3 per cent to USD 4,694.48 per ounce by 0202 GMT, while US gold futures dropped 1.9 per cent to USD 4,723.70.

Prices had risen over 1 per cent earlier in the session to the highest levels since March 19 before Trump’s statement.

Other Metals Decline

Other metals also declined. Spot silver fell 2.9 per cent to USD 72.95 per ounce, platinum dropped 1.8 per cent to USD 1,928.26, and palladium fell 1.4 per cent to USD 1,451.85.

Trump said the United States would strike Iran “extremely hard” over the next two to three weeks and push it back into the “Stone Ages.” He added that US strategic objectives in the conflict were close to being fulfilled.

Technical Levels and Trading Advice

Technical levels indicate that gold is trading near its crucial resistance of USD 4,840 per troy ounce, while silver is near USD 78 per troy ounce. Jain suggested booking profits in long positions around these resistance levels.

He said, “We are experiencing very high price volatility in both precious metals, but silver prices could hold their key support at USD 64 per troy ounce and gold at USD 4,470 per troy ounce this week on a closing basis.”

For the week ahead, he expects prices to remain volatile due to fluctuations in the dollar index, crude oil prices, and ongoing US-Iran tensions. Key support and resistance levels in the international market are USD 4,770-4,714 and USD 4,840-4,884 per troy ounce for gold, and USD 73.80-71.10 and USD 78.00-80.40 per troy ounce for silver.

Domestic Market Support and Resistance

In the domestic MCX market, gold has support at Rs 1,52,200-1,50,800 and resistance at Rs 1,54,800-1,56,000. Silver has support at Rs 2,40,000-2,34,400 and resistance at Rs 2,47,700-2,51,200.

Jain advised investors, “We suggest booking profits in gold and silver on every rise and avoid fresh long positions at higher levels due to long weekends.”

Gold and silver prices are likely to remain sensitive to global geopolitical developments and dollar index trends. Traders and investors are expected to closely watch international cues and domestic futures movements in the coming days.