Profit-Taking Pressures Gold and Silver Futures

Precious metals saw a decline on Tuesday, with gold and silver futures dropping as traders cashed in profits amidst weakening global markets. Silver for March delivery fell 2%, while gold futures decreased by 0.43%. Analysts suggest cautious optimism as traders anticipate upcoming macroeconomic data that could influence precious metal demand.

Gold and silver futures experienced downward pressure on Tuesday as traders opted to secure profits amidst underwhelming global market conditions. On the Multi Commodity Exchange, silver for March delivery decreased by 2.06%, trading at Rs 2.57 lakh per kilogram. The previous session had seen silver surge, closing at Rs 2.62 lakh per kg.

Gold futures also faced selling pressure, with the April contract down by 0.43% to Rs 1.57 lakh per 10 grams. The decline comes after the precious metal nearly reached Rs 1.58 lakh per 10 grams in the previous trading session. Analysts highlighted that the strengthening US dollar is adding further pressure on bullion prices globally.

The market sentiment remains cautiously constructive, according to Gaurav Garg, a Research Analyst at Lemonn Markets Desk. Investors are on the lookout for fresh macroeconomic data and policy cues, which may drive demand in the coming sessions. Silver fell below USD 82 per ounce on Tuesday, resuming its decline from recent gains as volatility persists.

(With inputs from agencies.)