Gold rate today: With reduced geopolitical tensions, safe-haven demand has dropped significantly, causing the MCX Gold June futures to fall to Rs 92,975/10 grams. This is a significant decrease of nearly Rs 6,500 from its April 22 peak of Rs 99,358/10 grams.
July contracts for silver demonstrated tenacity, rising by Rs 943 to Rs 96,287/kg, or roughly 1%.
Both the domestic and foreign markets were weak the day before. While silver July futures closed at Rs 95,344 per kilogram, down 1.43%, gold June futures closed at Rs 92,901 per 10 grams, down 3.75%.
A report claims that a number of factors, including the Indo-Pak ceasefire, the US-China trade agreement, a strengthening dollar index, and rising US bond yields, were responsible for the drop in precious metals prices.
The market saw a large sell-off at the start of the week after the US-China trade talks in Switzerland. Global market confidence was increased by the agreement's substantial tariff reductions for both nations over a 90-day period.
The announcement of the trade deal increased US bond yields and the dollar index. The US Dollar Index (DXY) was down 0.19 percent, trading close to 101.60.
Manoj Kumar Jain of Prithvifinmart Commodity Research claims that the weekend Indo-Pak ceasefire made it easier to purchase precious metals in a safe haven. Due to widespread risk aversion in international markets, the price of gold and silver dropped to their lowest levels in a month.
He added: "Global equity markets showed solid strength, pushing gold and silver prices lower. We expect gold and silver prices to remain volatile this week due to dollar index volatility and geopolitical tensions; gold prices may hold their key support level of $3,140 per troy ounce, while silver prices may also hold $31.40 per troy ounce levels."
Manoj Kumar Jain provides key trading levels for precious metals on the MCX.
Gold's critical support levels are located at Rs 92,400-91,770, while resistance levels are established at Rs 93,360-94,000. Silver support levels are identified as Rs 94,400-93,650, with resistance points at Rs 96,000-96,650.
Based on current market analysis, Jain advises investors to consider purchasing silver during price declines, while recommending a temporary halt in gold trading activities for the coming sessions.
