Gold Prices Decline by More Than Rs 2,200 per 10 Grams Today
Gold prices have taken a notable downturn, with June futures on the Multi Commodity Exchange (MCX) dropping by Rs 2,224, or 2.3%, to settle at Rs 94,294 per 10 grams. This decline comes amid easing tensions between India and Pakistan, which have influenced market sentiment. Additionally, optimism surrounding a potential resolution to the US-China trade conflict has contributed to the dip in domestic gold prices. Meanwhile, silver July futures also saw a decrease, opening at Rs 96,108 per kilogram, down by Rs 621 or 0.64%.
Market Trends and Recent Performance
In the previous trading session, both gold and silver managed to close positively in both domestic and international markets. Gold June futures finished at Rs 96,518 per 10 grams, marking a gain of 0.36%, while silver July futures ended at Rs 96,729 per kilogram, up by 0.22%. The fluctuations in the prices of these precious metals last week were largely driven by geopolitical tensions and monetary policy decisions from the Bank of England. The Indian Army’s Operation Sindoor heightened concerns in the region, prompting investors to seek safe-haven assets like gold and silver.
Market analysts noted that the recent interest rate cut by the Bank of England, which reduced rates by 25 basis points, also played a role in boosting the prices of these metals. Manoj Kumar Jain from Prithvifinmart Commodity Research highlighted that ongoing international economic uncertainties continue to support the valuation of precious metals. However, the strength of the dollar index, which remains above 100, poses a challenge to further gains in gold and silver prices.
Geopolitical Influences and Economic Factors
The geopolitical landscape, particularly the tensions between India and Pakistan, has had a significant impact on the gold and silver markets. The conflict has led to increased demand for safe-haven investments, resulting in price fluctuations. Analysts suggest that the ongoing situation will continue to influence market behavior in the coming weeks.
Additionally, the Federal Reserve’s decision to maintain current interest rates, coupled with positive developments in US-China trade discussions, has created a complex environment for precious metals. The US Dollar Index (DXY) was reported at 100.57, reflecting a slight increase of 0.23%. This stability in the dollar is expected to affect the pricing of gold and silver, as a stronger dollar typically leads to lower prices for these commodities.
Price Predictions and Recommendations
Looking ahead, analysts predict that gold and silver prices may experience further fluctuations due to movements in the dollar index and ongoing geopolitical uncertainties. Jain anticipates that gold will find support at $3,180 per troy ounce, while silver is expected to maintain support at $31.40 per troy ounce.
For the MCX, Jain has outlined specific price ranges for traders. He suggests that gold may find support between Rs 96,100 and Rs 95,550, with resistance levels at Rs 97,000 to Rs 97,450. For silver, support is projected at Rs 96,000 to Rs 95,350, while resistance could reach Rs 97,400 to Rs 98,200. Jain recommends purchasing silver when it dips to around Rs 95,850, with a stop loss set at Rs 95,100 and a target price of Rs 97,400.
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