Gold Price Rises 1% on MCX Amid Dollar Softening

Gold Price Update March 6, 2024

The MCX gold price surged by 1% on Friday morning, driven by a weaker US Dollar Index and strong spot demand amidst ongoing geopolitical tensions and volatile stock markets. MCX Gold April Futures reached ₹1,61,108 per 10 grams, while MCX Silver May Contract jumped to ₹2,68,378 per kg, representing a 2.4% increase.

The US Dollar Index eased by 0.40% to 98.94, making gold cheaper for overseas buyers. The ongoing US-Iran conflict, now in its seventh day, has significantly raised geopolitical risks, disrupting energy supplies and driving up crude oil prices. This has heightened concerns about inflationary pressures and elevated interest rates.

Market Expectations Markets anticipate the US Federal Reserve to maintain interest rates unchanged in its March policy meeting. However, the ongoing Middle East conflict has boosted demand for safe-haven assets, while also sending oil prices surging and prompting traders to scale back bets on Federal Reserve rate cuts.

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

Technical Analysis According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold and silver prices are expected to remain volatile. Jain suggests avoiding fresh positions ahead of the US February jobs report, which is due to be released later today. Key support and resistance levels for gold are ₹1,58,000 and ₹1,61,100, while for silver, they are ₹2,57,700 and ₹2,66,000.