Gold nears ₹1.61 lakh, Silver falls over 1% amid profit booking

Gold and Silver prices declined on February 26 in both domestic and international markets as investors booked profits following a recent strong rally. The fall comes amid a stronger US dollar and cautious global sentiment.

On the Multi Commodity Exchange (MCX), domestic gold futures were trading around ₹1,60,600 per 10 grams in morning trade, down nearly 0.34%. During the session, gold hovered close to the ₹1.61 lakh mark. Silver saw sharper decline, falling about 1.16% to trade near ₹2,65,206 per kilogram.

In the global market, gold on COMEX was hovering near $5,200 per ounce, slightly lower than the previous session. Silver was trading close to $89 per ounce, showing a sharper decline.

The fall in prices is mainly due to profit booking after recent gains and a stronger US dollar. A slightly weaker Indian rupee, however, helped limit the fall in domestic gold prices.

Experts say that despite the short-term decline, gold remains supported by global uncertainties, central bank buying, and inflation concerns. They believe this dip is more of a temporary correction rather than a major trend reversal.

Investors are now closely watching global cues and currency movements for the next direction in precious metal prices.