Gold Price Today: Rates Drop Nearly 1% Amid Stronger Dollar and Easing Geopolitical Tensions
Gold prices declined in the domestic futures market, trading around 0.70% lower at ₹91,615 per 10 grams by 9:10 AM. This fall comes as the US dollar strengthened and concerns over trade conflicts eased. Over the past week, gold prices have dropped more than 3% due to reduced demand for safe-haven assets.
On Thursday morning, the MCX Gold June 5 contract fell 0.70% to ₹91,615 per 10 grams. In the previous trading session, the same contract declined nearly 1.5%, closing at ₹92,265 per 10 grams.
The dip in gold and silver prices is linked to progress in US-China trade talks, which has lessened investors’ need for safety, while easing tensions between India and Pakistan have encouraged riskier investments, further weighing on gold demand.
MCX Gold has fallen over 3% in the last week.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, “On Wednesday, Gold June futures settled at ₹92,265 per 10 grams, down 1.48%, while silver July futures closed at ₹95,466 per kilogram, down 1.34%. Both metals were unable to maintain earlier gains and slipped again as safe-haven demand declined amid ongoing trade negotiations and global market risk aversion.”
The US dollar index remained volatile, adding pressure on bullion prices. With inflation in the US at manageable levels, expectations for Federal Reserve rate cuts have diminished, negatively impacting gold prices.
A Bloomberg report quoted Federal Reserve Bank of San Francisco President Mary Daly saying, “The US economy’s strength allows policymakers to be patient as they await more evidence on the impact of the Trump administration’s policies on businesses and households.”
Experts’ Strategies for MCX Gold and Silver
Manoj Kumar Jain advises caution: “Given this week’s expected volatility in the dollar index and upcoming global economic data, it is wise to avoid taking fresh positions in precious metals today.”
He added that gold has support between $3,140 and $3,164 per troy ounce, with resistance at $3,210 to $3,234. Silver support lies between $31.80 and $32.10, with resistance at $32.74 to $33.00 per troy ounce.
For MCX Gold, support levels are ₹91,360 to ₹91,770, with resistance at ₹92,650 to ₹93,100. Silver support stands at ₹94,200 to ₹94,800, and resistance at ₹96,000 to ₹96,650.
Rahul Kalantri, VP of Commodities at Mehta Equities, noted support for gold at $3,100 to $3,130, resistance at $3,200 to $3,220; silver support at $31.55 to $31.75, resistance at $32.30 to $32.65. In Indian Rupees, gold support is ₹90,780 to ₹91,350 with resistance at ₹92,450 to ₹92,690, while silver’s support ranges ₹93,550 to ₹94,380 and resistance at ₹95,950 to ₹96,750.
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