Gold prices trade lower as safe haven buying declines, but trade above Rs 1 lakh. Do analysts see capped upside?

Triggered by U.S. President Donald Trump’s clarification on gold being tariffed, safe-haven buying eased, with Gold October futures on MCX trading slightly lower at Rs 1,00,234 per 10 grams, down Rs 88 or 0.09% on Monday.

Meanwhile, silver September contracts were trading at Rs 1,13,675 per kg, up Rs 379 or 0.33%.

On Monday, gold and silver settled weaker in both domestic and international markets. Gold October futures closed at Rs 1,00,322 per 10 grams, down 1.45%, while silver September futures ended at Rs 1,13,296 per kg, down 1.38%.

Both metals faced heavy sell-offs following the US President’s tweet stating that “gold will not be tariffed,” reversing last Friday’s gains after a US customs ruling on steep tariff hikes for gold bar imports.

The clarification erased last week’s rally in precious metals.

“Gold and silver prices also fell ahead of the scheduled meeting between the US and Russian Presidents to discuss ending the war in Ukraine. However, robust demand for the metals, driven by US trade tariff uncertainty and the possibility of US Fed rate cuts, continues to provide support,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today’s US CPI inflation data is expected to set the tone for the Fed’s monetary easing and could guide precious metals’ direction.The US Dollar Index (DXY) hovered near 98.52, trading flat.“We expect gold and silver prices to remain volatile this week amid U.S. tariff uncertainty, key economic data releases, and the U.S.-Russia meeting. Gold is expected to trade between $3,340–3,540 per troy ounce, while silver is expected in the $36.80–40.00 per troy ounce range,” he added.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 99,900-99,475 and resistance at Rs 1,00,650-1,01,100
• Silver has support at Rs 1,12,700-1,12,000 and resistance at Rs 1,14,000-1,14,650

Jain suggests buying gold around Rs 1,00,100 with a strict stop loss of Rs 99,660 for a target of Rs 1,00,750.

Gold rates in physical markets

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,712/8 grams while pure gold (24 carat) prices stand at Rs 61,544/8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 56,936/8 grams while pure gold (24 carat) prices stand at Rs 60,696/8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,688/8 grams while pure gold (24 carat) prices stand at Rs 60,416/8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 57,168/8 grams while pure gold (24 carat) prices stand at Rs 60,944/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)