Gold prices on the Multi Commodity Exchange (MCX) rose on Thursday, tracking a rally in global bullion prices on a weaker US dollar. Silver prices also moved in tandem, gaining nearly half a per cent.
MCX gold rate opened higher at ₹97,600 per 10 grams as against its previous close of ₹97,357. Silver price kicked off the trade at ₹1,06,405 per kg as compared to the previous close of ₹1,05,980.
At 9:15 am, the gold price was trading at ₹97,462 per 10 grams, up by ₹105, or 0.11%, while the MCX silver price was up by ₹510, or 0.48%, at ₹1,06,490 per kg.
In the previous session, MCX gold prices ended 0.38% higher, while MCX silver prices rose 0.11%.
Gold prices gained in the international market as the US dollar slumped on growing uncertainty after reports suggested that US President Donald Trump is considering replacing Federal Reserve Chair Jerome Powell as early as September or October, raising concerns over the future independence of the US central bank. This boosted the demand for safe-haven bullion.
Spot gold price was up 0.2% at $3,339.20 per ounce, while US gold futures gained 0.3% to $3,353.10. Spot silver rose 0.2% to $36.36 per ounce.
The dollar fell to its lowest level since March 2022, making greenback-priced gold less expensive for overseas buyers.
“Gold prices found support as the dollar index dropped to its lowest in over three years, driven by weak US consumer confidence data and recession concerns. Meanwhile, increased NATO defence budgets and ongoing Russia-Ukraine tensions added to the bullish undertone. However, de-escalation in the Middle East continues to limit the upside in bullion,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Donald Trump called Powell “terrible” and said he is considering three or four potential candidates to lead the central bank. According to a report by The Wall Street Journal, Trump is even weighing the possibility of naming Powell’s potential successor as early as September or October.
Meanwhile, Jerome Powell told a US Senate panel on Wednesday that while Trump’s tariffs may cause a one-time price hike, the risk of persistent inflation is significant enough for the central bank to be cautious about further rate cuts.
“Fed Chair Jerome Powell maintained a cautious stance, saying the Fed can manage tariff-related inflation but is not yet ready to cut rates, despite political pressure. Meanwhile, while the ceasefire between Iran and Israel appeared to be holding, concerns lingered over its durability,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Bullion tends to do well during periods of uncertainty and in a low-interest-rate environment.
Investors will now watch out for US GDP data due later in the day, while also keeping a watch for data on Personal Consumption Expenditures (PCE) on Friday.
Gold Price Outlook
According to Rahul Kalantri, gold prices have support at $3,310-3,287, while resistance is at $3,360-3,375. Silver price has support at $36.00-35.70, while resistance is at $36.55-36.75.
“MCX gold price has support at ₹96,950 – ₹96,680, while resistance is seen at ₹97,850 – ₹98,200. Silver price has support at ₹1,05,380 – ₹1,04,600, while resistance is at ₹1,06,950 – ₹1,07,800,” Kalantri said.
Jigar Trivedi believes MCX gold August futures may appreciate to ₹97,800 per 10 grams, with support seen around the ₹97,000 level.
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.
