Gold price today: A day after suffering losses of 5%, the gold rate on MCX jumped more than 2% in morning deals on Friday, March 20, largely due to value buying amid persisting geopolitical risks.
In the previous session, the MCX gold April futures contract closed at ₹1,44,954 per 10 grams, plunging more than 5%, while the MCX silver May futures contract finished at ₹2,31,460 per kilogram, suffering a massive loss of nearly 7%.
On Friday morning, MCX gold April futures jumped by ₹3,350, or 2.30%, to ₹1,48,302 per 10 grams, while MCX silver May contracts surged by ₹8,540, or 3.7%, to ₹2,40,000 per kg.
While the medium to long-term outlook for gold remains healthy due to central bank buying and geopolitical factors, the dollar’s rise against its peers and weakening expectations of US Fed rate cuts this year remain key short-term challenges for precious metals.
Domestic spot gold prices, as per MCX data, have crashed by nearly ₹10,600, or almost 7%, till Thursday this week.
US gold futures have crashed more than 7% this week, looking set to extend losses for the third consecutive week amid a strengthening US dollar.
Gold prices have seen strong losses this week so far amid a rising US dollar driven by a sharp jump in crude oil prices. Since oil is largely traded in US dollars, a sharp jump incommodity prices increases demand for the dollar, driving it higher. This weighs on gold’s safe haven appeal.
The dollar index remained above the 100 level this week till Thursday. However, the index cooled significantly on Thursday, dropping to 98.97. On Friday again, the index rose by 0.20% to reclaim 99.42.
Brent Oil Futures dropped more than 3% on March 20 but stayed above the $100 a barrel mark.
Meanwhile, the US-Iran war continues, with Tehran attacking energy-producing facilities in the Middle East.
As per reports, Israeli Prime Minister Benjamin Netanyahu suggested the war with Iran might end sooner than expected.
Earlier, as media reports claimed, US President Donald Trump asked Israel not to attack Iranian natural gas infrastructure again, which further escalated the tensions. Israeli Prime Minister also said Israel will refrain from further attacks on Iran’s South Pars natural gas field.
The US Federal Reserve on March 18 maintained a status quo on interest rates and signalled that inflation could rise further due to geopolitical developments.
The Fed projected one rate cut this year, but traders see little scope for rate reduction in 2026.
Gold and silver: Key levels to watch
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,540 and $4,470, while resistance is at $4,664 and $4,740 per troy ounce. Silver has support at $68 and $64, while resistance is at $76 and 78.40 per troy ounce in today’s session.
Jain said MCX gold has support at ₹1,41,400 and ₹1,39,500, and resistance is at ₹1,47,200 and ₹1,49,100, while silver has support at ₹2,24,400 and ₹2,17,000 and resistance is at ₹2,38,000 and ₹2,44,000.
We suggest traders could use dead cat bounce to exit their long-positions as market trend change to bearish for the short term and wait for some stability in the markets for fresh long positions, investors are suggested to continue their SIP for a longer term perspective,” said Jain.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, MCX gold remains technically weak, with resistance now shifting lower towards ₹1,50,000, while key support is seen in the ₹1,44,000– ₹1,42,000 zone.
“Despite geopolitical tensions typically supporting safe-haven demand, the current environment is dominated by inflation-led policy tightening expectations, which is negative for non-yielding assets like gold. Rising oil prices are further reinforcing inflation risks, reducing the likelihood of near-term rate cuts,” said Trivedi.
“The overall short-term trend remains weak to volatile, and price action will continue to react sharply to developments in interest rate expectations and geopolitical cues,” Trivedi said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
