Gold futures with June expiry dropped more than 0.7% (Rs 1,101 per 10 grams) to trade at Rs 1,51,551 per 10 grams in the early trading hours of Monday on MCX. Silver futures with May expiry on MCX meanwhile dropped more than 2% (Rs 5,313 per kilogram) to trade at Rs 2,37,961 per kg.
In the international market, gold prices fell to a near one-week low, pressured by a stronger dollar, while a surge in oil prices following failed U.S.-Iran peace talks fuelled inflation worries and dampened expectations for Federal Reserve interest rate cuts this year. Spot gold was down 0.6% at $4,718.98 per ounce, after hitting its lowest level since April 7 earlier in the session. Spot gold has fallen more than 11% since the U.S.-Israeli war on Iran began on February 28.
Among other metals, spot silver fell 2% to $74.23 per ounce, platinum lost 0.5% to $2,034.95, while palladium gained 1% to $1,535.77.
After Trump’s blockade threats, Iran’s Revolutionary Guards responded by warning that military vessels approaching the Strait will be considered a ceasefire breach and dealt with harshly and decisively. These developments come after peace talks brokered by Pakistan in Islamabad during the weekend failed to result in an agreement.
What should investors do?
Higher crude oil prices and CPI inflation above Fed target rates are fading chances of interest rate cuts, said Manoj Kumar Jain from Prithvi Finmart. He added that the dollar index could also rebound after US-Iran peace talks failed and could also limit gains of precious metals. “We are experiencing very high price volatility in both precious metals but silver prices could hold its key support level of $62.00 per troy ounce and gold prices could also hold $4,470.00 per troy ounce this week on a closing basis. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in crude oil prices and uncertainty on the US-Iran peace deals,” the analyst said.
“Gold has support at $4740-4680 while resistance at $4840-4884 per troy ounce and silver has support at $74.00-70.70, while resistance is at $78.80-80.40 per troy ounce in today’s session. At MCX, gold has a support at Rs 1,51,100-1,49,200 and resistance at Rs 1,53,800-1,55,000 while silver has support at Rs 2,40,000-2,34,400 and resistance at Rs 2,47,700-2,51,000. We suggest waiting for some clarity on the U.S. and Iran peace deal for taking positions in gold and silver,” the analyst said.
Gold rates in physical markets
Here are the gold rates in major cities of India, as per data on GoodReturns.
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,40,240 per 10 grams, while pure gold (24 carat) prices stood at Rs 1,52,980 per 10 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,40,090 per 10 grams, while pure gold (24 carat) prices stood at Rs 1,52,830 per 10 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,40,990 per 10 grams, while pure gold (24 carat) prices stood at Rs 1,53,810 per 10 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,40,090 per 10 grams, while pure gold (24 carat) prices stood at Rs 1,52,830 per 10 grams.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)