Gold and silver prices witnessed a decline on Tuesday, February 24, as investors booked profits following the previous session’s gains and a stronger US dollar weighed on global bullion sentiment.
Pressure from a Firm US Dollar
A strengthening US dollar made precious metals more expensive for holders of other currencies, dampening demand in international markets. Since gold and silver are priced in dollars globally, any appreciation in the greenback typically exerts downward pressure on bullion prices.
Market participants attributed the dip largely to short-term profit booking after recent upward movement in prices. Traders often lock in gains after a rally, leading to temporary corrections.
MCX Mirrors Global Weakness
On the Multi Commodity Exchange (MCX), gold and silver futures traded lower, reflecting softness in overseas markets. The decline was in line with global trends, where bullion prices eased amid cautious investor sentiment and currency fluctuations.
Analysts noted that while the broader outlook for precious metals remains supported by inflation concerns and geopolitical uncertainties, near-term movements are being driven by currency strength and shifts in global bond yields.
Investor Sentiment and Outlook
Gold is widely considered a safe-haven asset during times of economic uncertainty. However, when the US dollar strengthens or interest rate expectations rise, non-yielding assets like gold and silver often face pressure.
Despite the current pullback, market experts believe underlying demand fundamentals remain intact. Factors such as central bank buying, inflation hedging, and global economic uncertainties could continue to support prices over the medium term.
For now, bullion markets are expected to remain sensitive to movements in the US dollar, global economic data, and policy signals from major central banks.