On Monday, gold prices experienced a significant drop on the Multi Commodity Exchange of India (MCX), reflecting a similar decline in global bullion markets. This downturn comes as positive developments in US-China trade negotiations have bolstered investor confidence, diminishing the traditional allure of gold as a safe-haven asset. The MCX gold rate opened at ₹95,500 per 10 grams, a notable decrease from the previous closing price of ₹96,518.
Market Trends and Gold Prices
By 9:05 AM, the MCX gold price had fallen by ₹2,253, or 2.33%, settling at ₹94,265 per 10 grams. Meanwhile, silver also took a hit, trading down by ₹578, or 0.60%, at ₹96,151 per kilogram. Internationally, the price of gold dipped as optimism surrounding US-China trade discussions encouraged investors to pivot towards riskier assets, leaving traditional safe havens like gold less attractive.
- Spot gold prices dropped 1.4% to $3,277.68 an ounce.
- US gold futures fell 1.9% to $3,281.40.
Positive Trade Developments
The recent trade talks between the US and China ended positively, with US officials announcing a "deal" aimed at reducing the trade deficit. Chinese representatives also noted they had reached an "important consensus." These developments have eased market anxieties, prompting a shift in investment strategies.
Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., remarked, “Gold prices fell sharply in morning trades across Asian markets amid signs of progress in trade talks between the US and China, alongside a reduction in geopolitical tensions.” He emphasized that factors such as the steady dollar index above 100, unchanged US interest rates, and hopeful trade negotiations are suppressing gold’s price growth.
Upcoming Economic Indicators
Traders are closely watching the upcoming release of the US Consumer Price Index (CPI) set for Tuesday, which may provide new insights into the Federal Reserve’s future monetary policies.
Gold and Silver Price Forecast
Kalantri provided a forecast for gold prices, indicating support levels at $3,255 – 3,235 and resistance at $3,300 – 3,325. For silver, the support range is $32.27-31.95 and resistance is $32.90-33.70.
In terms of Indian Rupees, gold prices are expected to find support at ₹95,550 – 94,980 and resistance at ₹96,950 – 97,340. Silver is projected to have support at ₹95,880 – 94,550 and resistance at ₹97,550 – 98,250.
As investors navigate these fluctuating trends, it remains crucial to stay informed about market dynamics and economic indicators that influence precious metal prices.
