Gold Prices Decline in India, Currently at Rs 96,980

Gold prices in India experienced a decline on Thursday, even as global markets saw an uptick following the U.S. Federal Reserve’s recent statements on inflation and employment challenges. Investors in India are exercising caution ahead of the upcoming trade discussions between the U.S. and China this weekend. While international gold prices rose, local market dynamics led to a decrease in domestic gold rates.

Global Gold Market Trends

International gold prices saw a notable increase, with spot gold rising by 1.4% to $3,409.76 per ounce. Concurrently, U.S. gold futures climbed 0.7% to $3,416.70 as of 0223 GMT. This surge followed the Federal Reserve’s decision to keep interest rates steady while expressing concerns over inflation and unemployment risks that could impact the U.S. economy. The Fed’s cautious stance has led market participants to anticipate potential rate cuts later this year, starting in September. Gold is often viewed as a safe-haven asset, particularly in times of economic uncertainty, which has contributed to its recent performance.

Domestic Gold Prices and Market Reactions

In the Indian market, MCX June gold futures were trading at Rs 96,981 per 10 grams, reflecting a decrease of Rs 109 from the previous session. In contrast, July silver futures showed a significant increase, rising by Rs 479 to reach Rs 96,212 per kg. The fluctuations in gold prices have been influenced by the ongoing uncertainty surrounding U.S.-China trade relations. As the market awaits key jobless claims data, analysts are closely monitoring price movements. Deveya Gaglani, a Senior Research Analyst at Axis Securities, noted that gold’s performance remains strong, with prices holding above critical support levels.

Upcoming U.S.-China Trade Discussions

The upcoming trade talks between U.S. and Chinese representatives in Switzerland are generating significant attention. Former President Donald Trump indicated that the meeting was initiated by China, while he reiterated his stance against reducing import tariffs as a bargaining chip. The outcome of these discussions could have far-reaching implications for global markets, including the precious metals sector. As uncertainty looms, gold continues to be perceived as a protective asset against economic and political risks.

Technical Analysis of Precious Metals

In the precious metals market, silver prices rose by 1.1% to $32.82 per ounce, while platinum increased by 0.8% to $982.05. Palladium prices remained stable at $971.95. Rahul Kalantri, Vice President of Commodities at Mehta Equities, provided insights into the technical aspects of gold and silver prices. He identified key support and resistance levels for both metals, indicating that gold has support at $3,370-$3,345 and resistance at $3,422-$3,440. In INR terms, gold’s support levels are at Rs 96,650-Rs 95,980, with resistance at Rs 97,950-Rs 98,390. Silver’s support is noted at Rs 94,880-Rs 94,150, while resistance is at Rs 96,950-Rs 97,880.

Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn