Silver rate today: Silver and gold prices extended their downward momentum on Tuesday, February 17, weighed down by thin trading across key Asian markets on account of Lunar New Year holidays, while stronger US dollar added to the pressure.
On MCX, silver price fell 2% to its day’s low of ₹2,35,206 per kg while MCX Gold rate declined 0.7% to ₹1,53,550 per 10 grams.
In international markets, Spot silver declined 2.7% to USD $74.51 per ounce, after sliding more than 3% earlier in the session. Whereas, Spot gold slipped 0.9% to USD $4,947.98 per ounce by 0110 GMT, having fallen 1% earlier in the day. Meanwhile, U.S. gold futures for April delivery dropped 1.6% to USD $4,966.80 per ounce.
Among other precious metals, spot platinum eased 0.8% to USD $2,025.05 per ounce, while palladium fell 1.5% to USD $1,698.10 per ounce.
Silver, Gold price: Reasons behind decline
Major markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea remain shut for the entire week due to the Lunar New Year holidays. In addition, U.S. markets were closed on Monday in observance of Presidents’ Day, leading to subdued global trading activity.
The U.S. dollar index rose 0.2% against a basket of currencies, making dollar-denominated bullion more expensive for investors holding other currencies, thereby pressuring prices.
Market participants are currently pricing in three 25-basis-point interest rate cuts by the U.S. Federal Reserve this year. Typically, non-yielding assets such as gold tend to benefit in a low interest rate environment.
Separately, U.S. President Donald Trump said on Monday that he would be involved “indirectly” in discussions between the U.S. and Iran regarding Tehran’s nuclear programme, scheduled to take place in Geneva on Tuesday, adding that he believed Iran was keen to strike a deal.
What’s next for the precious metals
Gold and silver prices opened the week on a cautious note as investors booked profits after the recent rally, with global markets now awaiting key economic data for fresh cues on the near-term direction of bullion prices.
According to Gaurvav Garg from Lemonn Markets, despite the mild pullback, the downside remained limited, supported by continued central bank buying, rising safe-haven demand amid the correction in technology and AI stocks, and weakness in the dollar index.
Market attention is now shifting to key macroeconomic triggers. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said that global commodity investors are closely tracking upcoming economic data as COMEX gold and silver prices rebound from their earlier lows.
“Currently, gold and silver have recovered from earlier lows and are trading near $5,025/oz and $77/oz respectively. Traders are now focusing on upcoming key data releases, particularly the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, scheduled for February 20, as a softer reading could further strengthen expectations of a potential rate cut in June,” said the expert.
Chainwala added that investors will also keep a close watch on the minutes of the Federal Open Market Committee meeting, the U.S. advance GDP data for December, and flash PMI readings from major global economies. These indicators are expected to provide further direction to bullion prices in the near term, especially as markets reassess the timing and pace of potential interest rate cuts.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
