Gold Price Prediction: Yellow metal slips by Rs 1,900 in 4 days. Is more downside ahead?
Amid fading chances of a rate cut ahead and after the US Court’s ruling to remove the reciprocal tariffs, Gold prices have started to witness profit booking, falling by Rs 1,900 in just the last 4 trading sessions. Gold June futures contracts at MCX fell by Rs 778 or 0.81% on Thursday to their day’s low of Rs 94,500/10 grams.
Meanwhile, silver July futures contracts were trading higher at Rs 97,647/kg, up by Rs 392 or 0.4% around 10:15 am.
On Wednesday, gold and silver settled on a mixed note in the domestic market, while settling on a weaker note in the international markets. Gold June futures contract settled at Rs 95,278 per 10 grams with a gain of 0.14% while silver July futures contract settled at Rs 97,255 per kilogram with a loss of 0.23%.
Gold and silver extended their fall in the international markets amid easing safe-haven buying due to strength in the dollar index and U.S. equity markets. The U.S. Fed shows confidence in the U.S. economy in its meeting minutes released on Wednesday. The U.S. Fed Chairman said that economic activity and job markets remain strong, but showed concern about inflation, and he denied for any immediate policy intervention.
The decline in the precious metals also followed a US Court of International Trade ruling that President Trump exceeded his authority with reciprocal tariffs, ordering their permanent removal. The administration is expected to appeal.
The U.S. President said on Wednesday, for another round of talks with Iran on the nuclear deal and also told the Israeli Prime Minister to hold off strike on Iran. Additionally, US gold exports to Switzerland rose sharply in April after tariffs on precious metals were lifted, affecting global gold trade dynamics.“Fading chances of interest rate cuts and easing tensions in the Middle East could push gold and silver prices lower,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the key U.S. economic data; gold prices could hold its support level of $3,200 per troy ounce and silver prices could also hold $31.80 per troy ounce levels on a weekly closing basis,” he added.
Today, the US Dollar Index, DXY, was hovering near the 100.25 mark, gaining 0.38 or 0.38%.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 94,660-94,200 and resistance at Rs 95,700-96,100
- Silver has support at Rs 96,650-96,000 and resistance at Rs 98,000-98,850
Jain suggests selling gold below Rs 95,000 with a stop loss of Rs 95,550 for a target of Rs 94,200.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,120/8 grams while pure gold (24 carat) prices stand at Rs 61,936/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,240/8 grams while pure gold (24 carat) prices stand at Rs 61,048/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,752/8 grams while pure gold (24 carat) prices stand at Rs 60,520/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,920/8 grams while pure gold (24 carat) prices stand at Rs 60,712/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)