Gold Price Falls on MCX Amid Strengthening US Dollar and Rising Oil Prices

Gold Prices Plummet on MCX Amid Strengthening US Dollar

Gold rates on the Multi Commodity Exchange (MCX) witnessed a decline on Friday morning, May 15, as a result of a stronger US dollar. This downward trend was largely driven by elevated crude oil prices, which have been on the rise for over two months. The MCX gold June futures took a 0.87% hit, dipping to ₹1,60,562 per 10 grams, while MCX silver July futures dropped by 3.28% to ₹2,81,551 per kg around 9:05 am.

International gold prices also declined to an over one-week low, driven by higher energy prices that have exacerbated concerns of an inflation spike and longer-term higher interest rates. The dollar index climbed by 0.30% to 99.10, following a surge in crude oil prices, with Brent Crude trading above the $107 per barrel level. Additionally, rising US bond yields have weighed on gold prices, with US 10-year Treasury yields jumping to a near-1-year high.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The focus remains on the meeting between US President Donald Trump and Chinese President Xi Jinping, which is being closely tracked globally. Trump's two-day visit to China is expected to address trade relations, economic pact, and the Middle East conflict, which has driven energy prices up and threatened to derail the world's growth-inflation dynamics.

Experts expect gold and silver prices to remain volatile in the near term due to geopolitical developments. Manoj Kumar Jain of Prithvifinmart Commodity Research identified support and resistance levels for gold and silver, while Ravi Singh, Chief Research Officer at Master Capital Services, highlighted the recalibration of gold's crucial support levels and the path of least resistance remaining to the upside.

Fundamentally, domestic resilience is contrasting with shifting global dynamics. While robust US economic data has boosted the dollar and pressured international spot prices, market sentiment is reacting to the conclusion of the high-stakes summit between President Trump and President Xi Jinping in Beijing. This complex backdrop continues to channel safe-haven demand into bullion, providing a solid foundation for the current rally even as international markets recalibrate.