Both gold and silver were trading with losses during Friday’s session, amid a stronger US dollar and a fading geopolitical risk premium following reduced tensions in the Middle East.
Tensions in Iran have temporarily eased after President Donald Trump indicated he may delay any military action, following Iran’s pledge not to execute protesters.
The February gold futures contract on MCX dropped by ₹721 to reach the day’s low of ₹1,42,400 per 10 grams.
Meanwhile, the March ₹7,000″>silver futures contract on MCX also fell nearly ₹7,000 per kilogram to reach the day’s low of ₹2,84,628, yet prices remain on track to post a 14% weekly gain.
Earlier this week, both gold and silver rose to fresh historic highs after protests flared up in Iran and US President Donald Trump signalled the potential for strikes on the nation.
Late on Thursday, however, Trump said Tehran’s crackdown on protesters was easing, allaying worries about possible military action. Reports also suggested that Israel and several Middle Eastern allies had asked the US to delay any attack on Iran amid fears that Iran could retaliate by striking their countries.
In addition to easing geopolitical tensions, the latest US jobs data has tempered expectations of Federal Reserve rate cuts, keeping the US dollar index firm and making dollar-priced commodities more expensive for holders of other currencies.
Dollar strengthens on healthy US jobs data
The dollar index held steady around 99 on Friday, poised for a third consecutive weekly gain as strong US jobs data tempered expectations for additional US Federal Reserve rate cuts.
Weekly jobless claims came in well below forecasts, signalling a resilient labour market, while some manufacturing surveys also exceeded expectations, as per media reports.
Today’s pullback in silver prices can also be attributed to the Trump administration’s decision to hold off on imposing import tariffs on critical minerals.
Fed policy meeting could trigger near-term volatility in gold prices, says expert
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “The ongoing geopolitical uncertainty between the US and Iran continues to lend support for gold, even as Washington indicated no immediate military intervention if Iran refrains from escalating actions.”
However, he noted that the situation remains fluid, with additional global flashpoints—including renewed strategic focus on Greenland—keeping risk sentiment elevated. In this environment, he believes gold continues to attract premium safe-haven demand as an alternative to the dollar.
“With the US Federal Reserve’s January policy meeting approaching, participants are closely tracking multiple triggers that could influence price action. Gold is expected to remain volatile within a broad range of ₹1,41,000– ₹1,45,000 in the near term,” added Jateen Trivedi.
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