Gold price opened higher on Multi Commodity Exchange (MCX) on Wednesday, stabilising after a sharp slump in the previous session, as investors monitored the fragile truce between Israel and Iran.
MCX gold rate opened 0.29% higher at ₹97,311 per 10 grams as against its previous close of ₹97,023. MCX silver prices also opened 0.22% higher at ₹1,06,341 per kg, as compared to its previous close of ₹1,06,102.
At 9:10 AM, MCX gold price was trading higher by ₹277, or 0.29%, at ₹97,300 per gram. MCX silver rate was up by ₹299, or 0.28%, at ₹1,05,216 per kg.
In the global markets, gold prices firmed as the US dollar and Treasury yields retreated. Spot gold price rose 0.2% to $3,328.89 per ounce, after hitting a more than two-week low on Tuesday. US gold futures gained 0.3% to $3,343.00. Spot silver was steady at $35.90 per ounce.
The Israel-Iran ceasefire on Tuesday signalled that the air war between them had ended, at least for now, denting safe-have demand for the yellow metal. MCX gold price crashed by 2.41%, or by ₹2,394, in the previous session to fall below ₹97,000 level.
Gains in gold price today were supported by a weak US dollar index, which hovered near a one-week low, making bullion more attractive for other currency holders. The benchmark 10-year Treasury yields remained near a more than one-month low.
Meanwhile, US Federal Reserve Chair Jerome Powell, in his testimony to the members of Congress, said that higher tariffs could begin raising inflation this summer, a period that will be key to the Fed’s consideration of possible rate cuts, Reuters reported.
Fed funds futures traders are now pricing in 60 basis points of rate cuts for 2025, with the first move expected to come in September.
Gold Price Outlook
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said that gold price has support at $3,300-3,277 levels, while resistance is seen at $3,348-3,365. Silver has support at $35.50-35.20, while resistance is at $36.30-36.55.
“MCX gold price has support at ₹96,450 – 95,910 levels, while resistance at ₹97,650 – 98,100. Silver price has support at ₹104,280 – 103,600, while resistance at ₹1,05.850 – 1,06,500,” Kalantri said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
