Gold price today: Gold rate dropped in morning deals on MCX on Monday, 1 June, dragged by a stronger dollar and elevated crude oil prices, even as investors’ focus remained on developments surrounding a potential US-Iran peace deal.
MCX gold August futures were 0.66% down at ₹1,59,850 per 10 grams, while MCX silver July futures were flat at ₹2,66,979 per kg around 9:10 am.
Gold prices in the US also declined amid a stronger dollar and rising oil prices. US gold futures dropped by 0.8% to $4,558.10 per troy ounce.
The dollar index rose by about 0.20%, making greenback-denominated gold expensive for buyers in other currencies.
Crude oil prices jumped by over 2% amid persistent uncertainty over a US-Iran deal, heightening the risk of inflation remaining high and driving global monetary tightening.
According to media reports, the US and Iran exchanged messages over the weekend seeking changes to a draft agreement that would extend a ceasefire and open the Strait of Hormuz, but it was unclear whether the sides were making much progress.
President Donald Trump said his proposed deal states clearly “that Iran will not have a Nuclear Weapon,” according to a post on Truth Social.
Meanwhile, as per Reuters, “Israeli Prime Minister Benjamin Netanyahu has ordered troops to move further into Lebanon in the battle against the Iranian-backed Hezbollah militant group.”
The Middle East conflict has kept oil prices elevated since the end of February, driving expectations of US Federal Reserve monetary tightening.
Reuters reported that Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday that the war could lead to persistent inflation that might require tighter monetary policy, while Federal Reserve Bank of Philadelphia President Anna Paulson signalled that slightly restrictive monetary policy is suitable when inflation risks are high.
“Rising crude oil prices kept inflation concerns elevated, while investors also remained cautious ahead of key U.S. economic data and interest rate signals from the Federal Reserve. A stronger dollar further limited upside momentum in bullion prices,” said Ravi Singh, Chief Research Officer (Research) at Master Capital Services.
“Rising crude oil prices kept inflation concerns elevated, while investors also remained cautious ahead of key U.S. economic data and interest rate signals from the Federal Reserve. A stronger dollar further limited upside momentum in bullion prices,” said Ravi Singh, Chief Research Officer (Research) at Master Capital Services.
Gold: Key levels to watch
Singh highlighted that the daily chart indicates that prices have slipped below this key short-term hurdle, keeping near-term sentiment weak.
As per Singh, immediate support is now placed near the 21-day EMA around ₹1,54,000, and a sustained breach below this level could accelerate selling pressure towards the ₹1,52,500 to ₹1,52,000 zone. On the upside, ₹1,56,500 remains the immediate resistance, while a move above ₹1,58,000 is required to improve the short-term technical structure.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said that MCX gold June futures are witnessing finding strong support around ₹1,55,000 per 10 grams, while immediate resistance is placed near ₹1,57,000. He added that the intraday bias remains mildly negative unless prices sustain above the resistance zone.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in crude oil prices, the dollar index, and hopes for a US-Iran peace deal.
Jain said gold has support at $4,564 and $4,522, while resistance is at $4,625 and $4,660 per troy ounce, and silver has support at $74.40 and $72, while resistance is at $78.80 and $80.40 per troy ounce in today’s session.
MCX gold, as per Jain, has support at ₹1,59,850 and ₹1,59,100 and resistance is at ₹1,62,000 and ₹1,63,300, while silver has support at ₹2,63,600 and ₹2,61,000 and resistance at ₹2,70,000 and ₹2,73,300.
“We suggest buying silver on dips around ₹2,64,000 with a stop loss below ₹2,60,600 for the target of ₹2,71,000,” said Jain.
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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.
