Gold price today: Gold rate rose on the MCX on Tuesday (19 May) morning as a decline in crude oil prices after US President Donald Trump paused strikes in Iran, dragged the US dollar lower. However, persisting uncertainty over the Middle East conflict capped gains for the yellow metal.
MCX gold June futures were 0.17% up at ₹1,59,674 per 10 grams, while MCX silver July futures were 0.30% down at ₹2,75,824 per kg around 9:10 am.
Crude oil benchmark Brent Crude fell 2% to trade below the $110 per barrel, which impacted the demand for the US dollar. The dollar index dropped by more than 0.20%, making greenback-denominated bullion cheaper for buyers in other currencies.
Trump on Monday signalled there was a “very good chance” of reaching a deal with Iran as he claimed that he had put a planned attack on the West Asian country on hold after Tehran sent a peace proposal to Washington.
Trump’s hints offered some relief to markets globally. Stocks rose, oil prices dropped, and dollar and bond yields eased.
The Middle East conflict has kept oil prices higher for more than two months, creating a major macroeconomic challenge not only for oil importers like India, but also for several major economies globally, as prolonged higher oil prices can drive inflation, drag economic growth, lead to monetary tightening and impact stock market performance.
“Gold has been under pressure since the Middle East conflict began, as surging oil prices intensified inflation fears, boosting expectations for further central bank interest rate hikes,” noted Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
“Rising US inflation has also prompted traders to scale back expectations for Federal Reserve rate cuts this year, while increasing speculation that the Fed could even raise rates before year-end,” Trivedi noted.
According to Ravi Singh, Chief Research Officer (Research) at Master Capital Services, the broader structure remains firmly bullish as long as gold sustains above ₹1,57,000, while a deeper and more critical floor is placed near ₹1,55,000, acting as a major accumulation area.
On the upside, Singh said immediate resistance is seen at ₹1,61,000, whereas a decisive breakout above ₹1,63,000 would be required to revive the primary uptrend toward the ₹1,65,000 mark.
Stabilisation above the ₹1,59,000 region indicates the market may be preparing for its next expansion move, said Singh.
“We suggest buying silver on dips around ₹2,71,000 and ₹2,67,000 with a stop loss below ₹2,63,000 for the target of ₹2,81,000 and ₹285000,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,515 and $4,470, while resistance is at $4,600 and $4,640 per troy ounce, and silver has support at $75.50 and $72, while resistance is at $80 and 82.80 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,58,200 and ₹1,57,400 and resistance at ₹1,60,300 and ₹1,61,100, while silver has support at ₹2,71,400 and ₹2,66,600 and resistance at ₹2,80,500 and ₹2,86,000.
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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.
