Gold and silver prices eased on Tuesday amid profit booking, after they surged to record high levels over worries of the US Justice Department's action against the Federal Reserve Chair.
MCX gold February futures eased 0.44 per cent to Rs 1,41,400 per 10 grams around 1.15 pm, while MCX silver March futures traded flat with a negative bias down 0.01 per cent at Rs 2,68,926 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,40,482 down from Rs 1,40,499 of previous day's close, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold prices had breached $4,600 per ounce for the first time ever, followed by investors booking profits.
The rally was supported by US President Trump announcing a 25 per cent tariff on nations trading with Iran and warned of potential military action as protests intensified.
Markets remain focused on the criminal probe into Fed Chair Jerome Powell's testimony, which he termed politically motivated pressure to force rate cuts, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Investors also await key US inflation data for clearer policy direction. While rates are expected to remain unchanged this month, markets continue to price in two cuts later this year, analysts said.
Last week's US jobs report showed weaker‑than‑expected payroll gains, reinforcing expectations that the Federal Reserve will deliver further interest‑rate cuts this year.
Demonstrations in Iran led markets to weigh the chances of political upheaval and its implications for oil supplies.
Russia's ongoing war in Ukraine and Washington's renewed signals over taking control of Greenland are other factors supporting the rally.
"Gold has support at Rs 1,39,550-1,37,310 while resistance at Rs 1,44,350-1,46,670. Silver has support at Rs 2,60,810 to 2,54,170 zone while resistance at Rs 2,71,810 to 2,74,470," analyst said.
Silver continues to trade with a strong structural bias, with medium-term targets seen above $100 during 2026, supported by persistent supply deficits and accelerating demand from industrial and green-energy applications, they added.
(With inputs from IANS)
