Gold price today: MCX gold rate falls 2% to below ₹97,000 on ceasefire in Israel-Iran war; Silver price down over 1%

Gold prices on Multi Commodity Exchange (MCX) opened sharply lower on Tuesday, following weakness in international bullion prices as the announcement of Israel-Iran ceasefire by US President Donald Trump dented the safe-haven appeal for the yellow metal.

MCX gold rate opened 0.58% lower at ₹98,807 per 10 grams, as against its previous close of ₹99,388 level. Gold price hit an intraday low of ₹96,422 on MCX in early trade, falling as much as 2.98%. MCX Silver rate opened 0.24% lower at ₹1,06,502 per kg as compared with its previous close of ₹1,06,759. It hit a low of ₹1,05,505 level.

At 12:00 PM, MCX gold price was trading lower by ₹2,081, or 2.09%, at ₹97,307 per 10 grams. MCX silver price was down by ₹1,236, or 1.16%, at ₹1,05,523 per kg.

In the global markets, gold prices fell to a near two-week low as risk appetite improved after Trump said Iran and Israel had agreed to a ceasefire.

Spot gold price was down 0.5% to $3,351.47 an ounce, after hitting its lowest level since June 11 earlier in the session. US gold futures slipped 0.9% to $3,365.30. Spot silver eased 0.1% to $36.10 per ounce.

US President Donald Trump announced a “Complete and Total CEASEFIRE” between Israel and Iran, meaning an official end to what he called the “12-Day War.”

However, while an Iranian official earlier confirmed that Tehran had agreed to a ceasefire, the country’s foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks.

“Gold prices declined as the ceasefire agreement between Israel and Iran reduced demand for safe-haven assets. Investors now look ahead to Fed Chair Jerome Powell’s testimony before the US Congress on Tuesday and Wednesday, seeking greater clarity on the central bank's policy direction,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Meanwhile, US Federal Reserve Vice Chair for Supervision Michelle Bowman said that the time to cut interest rates is approaching amid potential risks to the job market. Moreover, Fed Chair Jerome Powell will speak before the House Financial Services Committee later on Tuesday.

Gold Price Outlook

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. believes gold has support at $3,345 - $3,320, while resistance at $3,400 - $3,422. Silver price has support at $36.35 - $36.10, while resistance is at $37.00 - $37.25.

“MCX gold price has support at ₹98,750 - ₹98,490, while resistance at ₹99,650 - ₹1,00,000. Silver price has support at ₹105,880 - ₹105,000, while resistance at ₹1,07,550 - ₹1,08,400,” Kalantri said.

According to Jigar Trivedi, MCX gold rate has support at ₹97,900 per 10 grams level, while resistance is seen at ₹98,600 level.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.