Gold price today: Gold rate rose in the domestic futures market on Tuesday (March 17) morning, as heightened geopolitical risks stemming from the US-Iran war and the dollar’s volatility boosted demand for the yellow metal.
MCX gold April contracts rose more than half a per cent to ₹1,56,740 per 10 grams, while MCX silver May futures climbed more than 1% to ₹2,59,569 per kg in early deals on Tuesday.
In the previous session, the MCX gold April futures contract ended at ₹1,55,736 per 10 grams, losing about 2%, while the MCX silver May futures contract closed at ₹2,56,532 per kilogram, losing more than 1%.
The US–Iran war is now in its third week, and yet there are no signs indicating that it will end anytime soon.
Almost the entire Middle East is in chaos due to the war now. Iranian drones have attacked Dubai, Abu Dhabi, and Fujairah. Dubai International Airport was closed due to a drone strike on a fuel tank near the airport.
Meanwhile, crude oil prices continue to trade above $100 per barrel, keeping investors concerned about potential inflationary pressures and a dent in economic growth.
The US dollar is trading volatily ahead of the US Federal Reserve’s policy decision on 18 March. The US Fed is expected to keep rates unchanged amid evolving geopolitical conditions.
“Higher energy and commodity prices could lead to global inflation, forcing global central banks to halt their monetary easing cycles for some time. Uncertainty on the interest rate cuts due to higher inflation is pressuring gold and silver prices,” Manoj Kumar Jain of Prithvifinmart Commodity Research, noted.
Jain, however, added that gold and silver are holding their key support levels and the normalisation of the Strait of Hormuz and easing supply concerns could lift precious metal prices again.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, FOMC policy meetings and US-Iran war. We suggest traders must trade in a given trading range of gold and silver and strictly for intraday ahead of the Fed meetings, but long-term investors could accumulate in dips in a SIP mode,” said Jain.
“We suggest traders must trade in a given trading range of gold and silver and strictly for intraday ahead of the Fed meetings, but long-term investors could accumulate in dips in a SIP mode. On the MCX, gold has support at ₹1,54,000 and ₹1,52,800 and resistance at ₹1,56,600 and ₹1,58,000, while silver has support at ₹2,51,500 and ₹2,47,700 and resistance at ₹2,61,600 and ₹2,66,000,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Gold and silver: key levels to watch
According to Jain, gold has support at $4,964 and $4,920, while resistance is at $5,055 and $5,084 per troy ounce, and silver has support at $78 and $74.40, while resistance is at $84 and 86.40 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,54,000 and ₹1,52,800 and resistance at ₹1,56,600 and ₹1,58,000, while silver has support at ₹2,51,500 and ₹2,47,700 and resistance at ₹2,61,600 and ₹2,66,000.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold April futures to rebound to ₹1,57,500 in tandem with the global trends. Trivedi expects MCX silver May futures to stay positive, even as ₹2,58,000 may act as resistance in intraday trading today.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. 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.
