Gold Price Declines on MCX Amid Profit Booking and Geopolitical Uncertainty

Gold and Silver Prices Update

On March 11, the MCX gold April futures declined by approximately 0.5% to ₹1,62,638 per 10 grams, while the MCX silver May futures dropped nearly 1% to ₹2,75,402 per kg in early deals.

The decline in gold prices can be attributed to profit booking, however, geopolitical uncertainties and a weaker dollar index (slightly eased to 98.79) capped losses for the yellow metal. The previous session saw the MCX gold April futures contract settle at ₹1,63,303 per 10 grams, rising almost 2%, and the silver May futures contract settle at ₹2,77,850 per kilogram, gaining 4%.

Investors are booking profits amid conflicting signals about the US-Iran war. While US President Donald Trump earlier said the war could be nearing its end, media reports suggest the US and Israel continue their intense airstrikes on Iran.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The decline in crude oil prices (fell below $90 per barrel) has eased concerns over an inflation flare-up, which is negative for gold, seen as a hedge against inflation. The International Energy Agency has suggested the largest-ever release of oil from strategic reserves to meet oil demand amid supply disruptions.

Experts recommend buying gold on dips as the medium to long-term outlook remains positive. According to Manav Modi, Previous Metals Analyst, Commodities, MOFSL, gold by the year-end could target $6,000 on Comex and ₹1,75,000-1,80,000 on the domestic front.

Key support and resistance levels for MCX gold are:

• Support: ₹1,61,800, ₹1,60,350
• Resistance: ₹1,64,400, ₹1,66,600

Key support and resistance levels for MCX silver are:

• Support: ₹2,74,000, ₹2,68,800
• Resistance: ₹2,81,000, ₹2,85,500

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities