Gold price today: Gold rate declined in the domestic futures market in morning deals on Friday, 22 May, amid weak global cues, a stronger dollar, and concerns that rising inflationary pressures will lead to rate hikes across major economies.
MCX gold June futures were down 0.25% at ₹1,59,202 per 10 grams, while MCX silver July futures were 0.43% down at ₹2,73,690 per kg around 9:05 am.
Gold prices in the US looked set for their second consecutive weekly loss, as higher oil prices, driven by the Middle East conflict, have raised speculations of interest rate hikes by the US Federal Reserve.
As a non-yielding asset, gold prices tend to fall during periods of elevated interest rates.
Meanwhile, the US dollar hovers near a six-week high level, making greenback-denominated bullion more expensive for buyers in other currencies.
Gold has been under pressure over the last two months since the US-Iran war started, as a sharp jump in crude oil prices has driven the US dollar higher while stoking fears of an inflation flare-up. Most experts now feel that the US Federal Reserve and even the Reserve Bank of India may start hiking interest rates this year.
Oil prices remain elevated amid persisting uncertainty over a potential US-Iran peace deal. Crude oil benchmark Brent Crude rose by about 2% after Iran’s supreme leader, as per media reports, said Tehran’s uranium stockpile should not leave the country.
According to Reuters, CME Group’s FedWatch tool indicates traders are pricing in a 60% chance of a Fed rate hike by December.
Meanwhile, US President Donald Trump will swear in Kevin Warsh as the US Federal Reserve Chairman on Friday, Reuters reported.
“MCX Gold futures continue to trade in a volatile consolidation phase after the recent rally, with prices holding above all key EMAs, indicating that the broader trend still favours bulls,” Ravi Singh, Chief Research Officer (Research) at Master Capital Services, noted.
“Globally, gold prices slipped slightly as easing concerns over possible conflict involving Iran reduced safe-haven demand. At the same time, elevated U.S. Treasury yields and a firm dollar continued to pressure bullion prices, limiting recovery attempts in the international market,” Singh observed.
According to Singh, a decisive move above ₹1,60,300 is required to trigger fresh upside momentum towards the ₹1,64,000 zone.
“On the downside, immediate support is placed near ₹1,57,500, and a sustained break below this level may drag prices toward ₹1,53,000. Until a breakout on either side, range-bound movement is likely to continue,” said Singh.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,510 and $4,467, while resistance is at $4,580 and $4,615 per troy ounce. Silver has support at $74.20 and $72, while resistance is at $79.10 and $81.20 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,58,800 and ₹1,58,000 and resistance at ₹1,60,350 and ₹1,61,100, while silver has support at ₹2,70,700 and ₹2,66,600 and resistance at ₹2,79,100 and ₹2,83,350. said Jain.
Disclaimer: This story is for educational purposes only and does not constitute investment advice. 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.
