Gold prices on Multi Commodity Exchange of India (MCX) declined sharply on Monday, tracking a fall in international bullion prices, as optimism over US-China trade deal improved investor risk-appetite and dented safe-haven appeal for the yellow metal.
MCX gold rate opened lower at ₹95,500 per 10 grams as against its previous close of ₹96,518. At 9:05 AM, MCX gold price was trading lower by 2,253 ₹, or 2.33%, at ₹94,265 per 10 grams. MCX Silver rate was trading lower by ₹578, or 0.60%, at ₹96,151 per kg.
In the global markets, gold prices slipped as optimistic signals from US-China trade talks alleviated market fears, leading investors to shift from safe-haven assets towards riskier investments.
Spot gold price fell 1.4% to $3,277.68 an ounce, while US gold futures lost 1.9% to $3,281.40.
The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said they had reached “important consensus”, Reuters reported.
“Gold prices fell sharply in morning trades across Asian markets amid signs of a progress in trade talks between US and China, along with some relief in geopolitical tensions. The dollar index trading steady above the 100 mark, the US Fed keeping interest rates unchanged and US-China trade negotiation hopes are the factors limiting gains of precious metals,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Meanwhile, traders are also eyeing the release of the US Consumer Price Index on Tuesday for fresh signals on the US Federal Reserve’s monetary policy trajectory.
Gold Price Outlook
According to Rahul Kalantri, gold price has support at $3,255 – 3,235 while resistance is at $3,300 – 3,325. Silver has support at $32.27-31.95 while resistance is at $32.90-33.70.
“In INR terms, gold prices have support at ₹95,550 – 94,980 while resistance is at ₹96,950 – 97,340. Silver price has support at ₹95,880 – 94,550 while resistance is at ₹97,550 – 98,250,” said Kalantri.
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