Gold price today: Gold rate declined on the MCX in early deals on Tuesday, 21 April, due to profit booking amid an uptick in the US dollar, while persisting uncertainty about the proposed US-Iran talks keeps crude oil prices at elevated levels, weighing on gold prices.
MCX gold June futures were 0.07% down at ₹1,53,829 per 10 grams, while MCX silver May contracts were 0.69% down at ₹2,50,801 per kg at 9:10 am.
Gold and silver rates have been highly volatile of late, largely due to the rise in the US dollar driven by a spike in crude oil prices. When oil prices rise, demand for the dollar rises, as oil is largely traded in US dollars. This drives the greenback higher, weighing on gold prices.
Even as Brent Crude oil prices eased slightly, they traded near the $95 a barrel.
Higher crude prices raise inflationary risks with increased transportation and production costs. This dims the prospects of interest rate cuts, making yield-bearing assets, such as fixed deposits and bonds, more attractive, weighing on non-yield-bearing gold prices.
The focus is on the possible talks between the US and Iran as the two-week ceasefire is set to expire this week.
According to reports, US President Donald Trump, on 20 April, hinted that the ceasefire between Washington and Tehran may not be extended.
Meanwhile, Axios reported that Vice President JD Vance may depart for Islamabad by 21 April morning to resume negotiations with Iran.
Reuters reported that Iran is considering attending peace talks with the US in Pakistan.
“MCX gold June futures may drop to ₹1,53,000 per 10 grams as the sentiment looks weak in the global markets,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,788 and $4,740, while resistance is at $4,864 and $4,910 per troy ounce, and silver has support at $78.40 and $76.60, while resistance is at $82 and $84.40 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,52,800 and ₹1,51,500 and resistance at ₹1,54,850 and ₹1,55,500, while silver has support at ₹2,50,000 and ₹2,46,600 and resistance is at ₹2,56,000 and ₹2,59,100, said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“We maintain our buy on dips strategy in gold until it holds ₹1,48,000 on a closing basis for the target of ₹1,55,500 and ₹1,57,000, and silver until it holds ₹2,45,000 on a closing basis for the targets of ₹2,59,100 and ₹2,61,600,” said Jain.
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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.
