Today’s Gold Rates: Prices Decrease by Rs 6,500 per 10 Grams
Gold prices have experienced a significant decline as geopolitical tensions ease, leading to reduced demand for safe-haven assets. As of today, MCX Gold June futures have dropped to Rs 92,975 per 10 grams, marking a decrease of nearly Rs 6,500 from the peak of Rs 99,358 recorded on April 22. In contrast, silver prices have shown some resilience, trading approximately 1% higher at Rs 96,287 per kilogram.
Market Trends and Influences
The recent downturn in precious metal prices can be attributed to several factors, including the recent US-China trade agreement and a ceasefire between India and Pakistan. The trade deal, which includes significant tariff reductions over a 90-day period, has bolstered confidence in global markets. As a result, the US Dollar Index (DXY) has strengthened, currently hovering around 101.60, despite a slight decrease of 0.19%.
On the domestic front, gold futures settled lower at Rs 92,901 per 10 grams, reflecting a 3.75% decline, while silver futures ended at Rs 95,344 per kilogram, down by 1.43%. Manoj Kumar Jain from Prithvifinmart Commodity Research noted that the easing of geopolitical tensions has reduced safe-haven buying, contributing to the drop in gold and silver prices.
Current Market Analysis
Jain highlighted that global equity markets are showing solid strength, which has further pressured gold and silver prices downward. He anticipates continued volatility in the prices of these precious metals this week, influenced by fluctuations in the dollar index and geopolitical developments. According to Jain, gold prices are expected to maintain key support levels around $3,140 per troy ounce, while silver prices may hold at $31.40 per troy ounce.
For traders, Jain has identified crucial support and resistance levels for both gold and silver on the MCX. For gold, support levels are set at Rs 92,400 to Rs 91,770, with resistance at Rs 93,360 to Rs 94,000. In the case of silver, support is identified at Rs 94,400 to Rs 93,650, while resistance points are at Rs 96,000 to Rs 96,650.
Investment Recommendations
In light of the current market conditions, Jain advises investors to consider purchasing silver during price declines. However, he recommends a temporary pause in gold trading activities for the upcoming sessions. This cautious approach reflects the ongoing volatility and uncertainty in the precious metals market, as traders navigate the implications of recent geopolitical events and economic indicators.
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