Gold Prices Drop Significantly Today, Falling Over Rs 6,500
Gold prices experienced fluctuations in the market today, with June futures on the Multi Commodity Exchange (MCX) opening lower at Rs 92,965 per 10 grams, a decrease of Rs 332 or 0.36%. Silver July futures also saw a decline, trading at Rs 95,172 per kilogram, down by Rs 281 or 0.29%. Despite these changes, the overall trend for gold has remained relatively stable over the past week, even as prices have dropped significantly from their peak of Rs 99,358 per 10 grams.
Market Trends and Influences
In international markets, gold and silver initially rose after Moody’s downgraded the US credit rating, creating a brief surge in demand for safe-haven assets. However, this rally was short-lived, with prices falling below $3,320 and $32.20 per ounce as optimism grew regarding potential peace talks between Russia and Ukraine. This shift in sentiment led to a decrease in demand for precious metals, which are typically sought during times of uncertainty. By the end of Monday’s trading, gold June futures closed at Rs 93,297 per 10 grams, marking a gain of 0.93%, while silver July futures finished at Rs 95,453 per kilogram, up by 0.14%.
Economic Factors at Play
Moody’s recent downgrade of the US credit rating from ‘Aaa’ to ‘Aa1’ has raised concerns about rising US debt levels. This development has sparked renewed interest in gold and silver as safe-haven investments. The dollar index also saw a notable decline, hovering around the 100 mark, which provided additional support to gold and silver prices. The US Dollar Index (DXY) was trading at approximately 100.36, reflecting a decrease of 0.07%. Analysts suggest that the ongoing geopolitical tensions and economic uncertainties will continue to influence the prices of these precious metals.
Future Price Predictions
Market expert Manoj Kumar Jain from Prithvifinmart Commodity Research predicts that gold and silver prices will experience fluctuations this week, driven by the unstable dollar index and developments in the Russia-Ukraine peace negotiations. He believes that gold will likely maintain support levels above $3,120 per troy ounce, while silver is expected to remain firm at around $31.40 per troy ounce. Jain has outlined specific price levels for MCX trading, indicating that gold’s support levels are between Rs 92,750 and Rs 92,200, with resistance at Rs 93,850 to Rs 94,400. For silver, support levels are set at Rs 94,800 to Rs 94,000, with resistance at Rs 96,000 to Rs 96,650. He recommends purchasing silver near Rs 94,800, with a stop loss at Rs 94,150 and a target of Rs 96,100.
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