Today’s Gold Prices: Decline from Record Highs
Gold prices are experiencing notable fluctuations as they remain within a defined range. As of today, June futures for gold on the Multi Commodity Exchange (MCX) opened at Rs 95,444 per 10 grams, reflecting a 0.64% increase or Rs 603. This comes after a significant drop of Rs 1,900 from last month’s peak levels. Meanwhile, silver July futures began trading at Rs 97,620 per kilogram, marking a modest rise of 0.34%. The market’s focus has shifted from the recent downgrade by Moody’s on US credit ratings to the Federal Reserve’s interest rate decisions and the overall economic landscape in the United States.
Market Trends and Influences
Both gold and silver concluded positively in the domestic and international markets on Tuesday. Gold June futures settled at Rs 94,841 per 10 grams, up by 1.65%, while silver July futures finished at Rs 97,288 per kilogram, gaining 1.92%. The recent volatility in trading has been attributed to increased demand for safe-haven assets, particularly following Moody’s downgrade of US ratings amid rising federal debts. The dollar index has also been on a downward trend, which, coupled with declines in global equity markets, has further supported the prices of these precious metals.
The US Dollar Index (DXY) was recorded at approximately 99.69, showing a decrease of 0.43% for the day. Additionally, rate cuts by central banks in China and Australia have contributed to the upward trend in precious metals. China recently reduced its one-year and five-year loan rates by 10 basis points, while Australia implemented a 25-basis-point cut. These developments, alongside rising Canadian inflation and disappointing consumer confidence figures in Europe, have provided further support to gold and silver prices.
Expert Insights and Predictions
Manoj Kumar Jain from Prithvifinmart Commodity Research has indicated that ongoing negotiations regarding a potential ceasefire in the Russia-Ukraine conflict may limit further price increases in precious metals. He anticipates that gold and silver prices will remain volatile throughout the week, influenced by fluctuations in the dollar index and developments in peace talks. Jain has outlined specific trading levels for precious metals on the MCX, suggesting that gold’s support levels are between Rs 94,200 and Rs 93,650, with resistance points at Rs 95,360 and Rs 95,800. For silver, support levels are identified at Rs 96,650 to Rs 96,000, while resistance points are set between Rs 98,000 and Rs 98,850.
Market Recommendations
In terms of trading strategy, Jain recommends initiating silver purchases near Rs 96,800, with a stop loss at Rs 96,150 and a target of Rs 98,250. Aksha Kamboj, Executive Chairperson of Aspect Global Ventures, has noted that sustained acquisitions by central banks and consistent demand during the Indian wedding season should help maintain a price floor for gold. However, she also cautions that the absence of significant upward catalysts may lead to a range-bound market with intermittent price fluctuations until clearer directional indicators emerge.
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