Gold price today: Rates decline on volatile dollar, fading trade war risks; experts highlight key levels for MCX Gold

Gold price today: Gold rates traded lower in the domestic futures market Friday morning as the dollar's volatility against its peers and fading trade war risks continued to weigh on demand for the safe-haven asset. MCX Gold June 5 contracts traded flat at ₹93,172 per 10 grams around 12:45 PM after falling to ₹92,728 per 10 grams level earlier in the session.

International gold prices, as Reuters reported, were poised for their steepest weekly decline in six months.

Gold prices have seen profit booking this month after the US announced trade deals with the UK and China and signalled it could seal deals with several other key trading partners in the days to come.

Apart from easing trade war worries, weakening expectations of rate cuts by the US Federal Reserve is also pressurising gold prices.

According to Reuters, Federal Reserve Governor Michael Barr said on Thursday that the US economy remains strong, while inflation is inching closer to the central bank's 2 per cent target. However, the US trade policies have created significant uncertainty.

The US consumer prices saw the smallest annual increase in four years. The US Consumer Price Index increased 0.2 per cent in April after dropping 0.1 per cent in March. Year-on-year, the CPI climbed 2.3 per cent, marking the smallest gain since February 2021. In March, US CPI rose 2.4 per cent year-on-year.

Domestic spot gold prices have dropped 2 per cent in May till the 15th. However, this year, the yellow metal is still up over 21 per cent.

“Gold prices across the globe have declined to their lowest level in a month. Factors that raised bullion rates, including the US-China tariff tensions, the Russia-Ukraine war, and the volatility in the equity markets, all appear to be easing. This has also impacted bullion prices in the Indian market," Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures, observed.

"Higher bond yields in the US and the tempering down of rate cut expectations by the US Federal Reserve could put further pressure on global gold prices, which may affect prices on the MCX too," said Kamboj.

Kamboj, however, believes the fall in prices is a positive for gold buyers in India and those interested in investing in physical gold for the long term, especially ahead of the upcoming wedding season.

Experts highlight key levels for MCX Gold, Silver

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,195-3,175, while resistance is at $3,245-3,260. Silver has support at $32.10-31.80 while resistance is at $32.65-32.85.

In INR, Kalantri said gold has support at ₹92,850-92,480 while resistance is at ₹93,650-93,890. Silver has support at ₹95,080-94,450 while resistance is at ₹96,650-97,250.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $3,200-3,174, while resistance is at $3,250-3,280 per troy ounce, and silver has support at $32.40-32.10, while resistance is at $33.00-33.30 per troy ounce in today’s session.

Jain added that MCX Gold has support at ₹92,550-92,000 and resistance at ₹93,660-94,140, while silver has support at ₹95,300-94,500 and resistance at ₹96,650-97,400.

"We suggest buying silver around ₹95,500 with a stop loss of ₹95,000 for the target of ₹96,650," said Jain.

According to Renisha Chainani, the head of research at Augmont, gold prices have broken the double-top neckline support of $3,200, so more downside is expected up to $3,000-3,050 (nearly ₹87,000 - 88,000) in the short term.

Silver prices may see momentum now, as the tariff war has de-escalated. Prices may touch $34(nearly ₹99,000) and $35(nearly ₹1,02,0000) soon in the coming days," said Chainani.

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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.