Gold prices experienced a decline on the Multi Commodity Exchange of India (MCX) this Wednesday, as geopolitical tensions between India and Pakistan heightened. Investors are also keenly awaiting the outcome of the US Federal Reserve’s monetary policy meeting scheduled for later today. With these dynamic factors at play, let’s delve into the current market scenario.
Gold Prices Dip Amid Rising Tensions
The MCX gold rate opened at ₹96,900 per 10 grams, down from the previous close of ₹97,491. By 9:05 AM, the price further decreased by ₹841, or 0.86%, settling at ₹96,650 per 10 grams. This comes on the heels of a 3% rally in the previous trading session, indicating a volatile market.
- Current MCX Gold Price: ₹96,650 per 10 grams
- Previous Close: ₹97,491
- Change: -₹841 (0.86%)
Silver Prices Also Decline
Similarly, MCX silver opened lower, trading down by ₹251, or 0.26%, at ₹96,450 per kg. This trend mirrors the fluctuations seen in the gold market, contributing to a cautious atmosphere for precious metal investors.
Geopolitical Factors Influencing Prices
Tensions escalated after the Indian Armed Forces executed ‘Operation Sindoor,’ targeting nine terror sites in Pakistan and Pakistan-occupied Kashmir (PoK). These precision strikes have added an element of uncertainty to the market, affecting investor sentiment.
International Market Trends
In the global arena, gold prices also faced downward pressure as optimism surrounding potential US-China trade discussions diminished demand for safe-haven assets. Current spot gold prices dropped 1.2% to $3,388.67 an ounce, following a nearly 3% increase in the last session. Meanwhile, US gold futures fell 0.7% to $3,397.70.
Expert Insights on Market Movements
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, the precious metal is likely to face a significant decline throughout the day. "The international prices have receded this morning after US officials expressed optimism about the upcoming trade talks in Switzerland. However, this optimism follows comments from President Donald Trump, who indicated no urgency in finalizing trade deals," Trivedi noted.
Focus on the US Federal Reserve Policy
Market participants are closely monitoring the US Federal Reserve’s monetary policy announcements. Trivedi anticipates that the Fed will maintain current interest rates following its two-day meeting. The central bank is expected to provide limited signals regarding immediate rate changes due to ongoing economic uncertainties and trade tariffs.
- Projected MCX Gold Decline: May fall towards ₹96,500 per 10 grams
- Support Levels: ₹96,650 – ₹95,980
- Resistance Levels: ₹97,950 – ₹98,390
Silver Market Analysis
Rahul Kalantri, VP of Commodities at Mehta Equities, offers insights into silver’s market dynamics, stating that it has support at $32.65 – $32.40 and resistance at $33.30 – $33.55. For MCX silver, he identifies crucial support levels at ₹95,580 – ₹94,750 and resistance at ₹97,350 – ₹97,950.
As the day unfolds, the interplay between geopolitical tensions and economic indicators will likely shape the trajectory of gold and silver prices in the coming hours. Stay tuned for updates on market trends and investment opportunities.
