Gold and silve: After rising to all-time highs due to concerns over the US Justice Department’s move against the Federal Reserve Chair, gold and silver prices dropped on Tuesday amid profit booking.

MCX silver March futures traded flat with a negative bias down 0.01 percent at Rs 2,68,926 per kg, while MCX gold February futures slipped 0.44 percent to Rs 1,41,400 per 10 grams at about 1:15 pm.

According to statistics released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold went down from Rs 1,40,499 at the closing of the previous day to Rs 1,40,482.

Following the first-ever break of $4,600 per ounce in gold prices, investors booked profits.

As demonstrations became more intense, US President Trump backed the demonstration by slapping a 25% levy on countries that trade with Iran and threatening to use force if necessary.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd., said that markets are still concentrating on the criminal investigation into Fed Chair Jerome Powell’s testimony, which he described as politically driven pressure to compel rate reduction.

In order to determine a clearer course for policy, investors also anticipate important US inflation data. According to economists, markets are still pricing in two rate cuts later this year, even if rates are predicted to stay the same this month.

Expectations that the Federal Reserve will lower interest rates further this year are strengthened by last week’s US employment data, which revealed weaker-than-expected payroll increases.

Iran’s protests caused markets to assess the likelihood of political unrest and how it might affect oil supply.

The demonstration is also being supported by Washington’s increasing warnings about annexing Greenland and Russia’s continuing conflict in Ukraine.The resistance of gold is around Rs 1,44,350-1,46,670, while the support is at Rs 1,39,550-1,37,310. According to the expert, silver has resistance between Rs. 2,71,810 and Rs. 2,74,470 and support between Rs. 2,60,810 and Rs. 2,54,170.

Due to ongoing supply shortages and rising demand from industrial and green energy applications, silver is expected to trade with a strong structural bias and reach medium-term objectives over $100 by 2026, they noted.