Gold price today: Rates drop on profit booking; rising Israel-Iran tensions, US Fed policy in focus

Gold price today: Gold rates slipped in the domestic futures market on Wednesday (June 18) morning on profit booking even as rising tensions between Israel and Iran — and fears of the conflict spiralling into a major regional war — remain a key support for the yellow metal.

Investors appear to be booking profits ahead of the US Federal Reserve’s policy outcome, due later today, amid widespread expectations that the central bank will maintain benchmark rates due to heightened geopolitical and tariff-related risks.

MCX Gold August 5 contract traded 0.16 per cent lower at ₹99,385 per 10 grams.

In the previous session, Gold August futures contract ended at ₹99,541 per 10 grams, rising about 0.40 per cent as Israel-Iran war supported safe haven demand. However, experts pointed out that expectations of no rate cuts by the US Fed, downbeat US retail sales and core retail sales data and cooling demand from Chinese markets capped gains for the yellow metal.

Israel and Iran exchanged missile fire for the fifth consecutive day on Tuesday, June 17, as US President Donald Trump, who left the G7 Summit ahead of schedule, issued a stark warning to Tehran residents to “immediately evacuate”.

Meanwhile, the market expects the US Fed to keep rates unchanged, but Fed Chair Jerome Powell's commentary on growth and inflation trends will be a key trigger for bullion.

"US Fed is expected to keep interest rates unchanged at 4.25-4.5 per cent in its upcoming 17-18 June meeting. All eyes are expected to be on the summary of Economic Projections and the dot plot for the way forward by the Fed. Commentary from Jerome Powell and his tone while addressing issues such as inflation risk and global uncertainties remains the key," said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One.

Analysts at Axis Securities believe gold prices are primed to reach the $3,600 - $3,800 zone in the short term, where the brokerage firm suggests swing traders book profits since the dollar is close to reversing its decline.

On the downside, $3,245 is critical – anything under that, and a bigger drop below $3,000 becomes a real risk. In summary, all eyes are on $3,289 for between now and month-end, according to Axis Securities.

Experts highlight key levels for MCX Gold, Silver

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,384-3,360, while resistance is at $3,427-3,455 per troy ounce, and silver has support at $36.80-36.40, while resistance is at $37.40-37.74 per troy ounce in today’s session.

"MCX Gold has support at ₹99,100-98,650 and resistance at ₹99,850-1,00,200 while silver has support at ₹1,08,000-1,07,200 and resistance at ₹1,09,750-1,10,600. We suggest buying silver on dips around ₹1,08,000 with a stop loss of ₹1,07,200 for the target of ₹1,10,000," said Jain.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,360-3,340 while resistance is at $3,400-3,422. Silver has support at $36.80-36.60 while resistance is at $37.45-37.65. In INR terms, gold has support at ₹98,920-98,590 while resistance is at ₹99,950-1,00,240. Silver has support at ₹1,08,150-1,07,450 while resistance is at ₹1,09,900-1,10,750.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.