Gold Price Sees Uptick on MCX Amid Decline in US Dollar and Oil Prices

Gold Prices Stabilize Amid Ongoing US-Iran Conflict

Gold prices on the Multi Commodity Exchange (MCX) witnessed a slight increase on Wednesday (27 May), driven by positive global cues, a decline in the US dollar, and lower oil prices. However, persistent uncertainty surrounding a potential US-Iran deal and reports of Israeli attacks in southern Lebanon kept investors cautious, limiting the yellow metal's gains.

MCX gold June futures rose by 0.13% to ₹1,57,815 per 10 grams, while MCX silver July futures increased by 0.54% to ₹2,72,100 per kg around 9:05 am.

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The dollar index eased by about 0.10%, and US 10-year bond yields fell by about half a percentage point to 4.47%, boosting investor interest in gold. Crude oil prices declined over 1% as Iran-US peace talks continued, despite fresh US strikes in southern Iran.

The ongoing conflict between the US and Iran has put pressure on gold prices since the US-Iran war started on 28 February. International gold prices have fallen about 15% since the start of the Middle East conflict, largely due to concerns that higher energy prices will drive up inflation, leading to interest rate hikes.

Analysts remain cautiously optimistic that the US and Iran could still secure a peace agreement despite renewed tensions in the Middle East. According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold June may trade in a range from ₹1,56,600 per 10 grams to ₹1,58,100 per 10 grams.

Ravi Singh, Chief Research Officer (Research) at Master Capital Services, highlighted that the chart shows immediate horizontal support at the 21-day EMA near ₹1,56,500, followed by a stronger systemic floor at ₹1,53,000. On the upside, resistance stands at ₹1,61,000, with a key target at ₹1,63,000.

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Manoj Kumar Jain of Prithvifinmart Commodity Research noted that gold has support at $4,500 and $4,467, while resistance is at $4,574 and $4,600 per troy ounce. Silver has support at $74.40 and $72, while resistance is at $78.80 and $80.40 per troy ounce in today's session.

Jain suggested buying silver in the range of ₹2,71,000 and ₹2,67,000 with a stop loss below ₹2,63,000 for the target of ₹2,81,000 and ₹2,85,000. He also recommended buying gold in the range of ₹1,58,500 and ₹1,57,700 with a stop loss below ₹1,56,650 for the target of ₹1,59,350 and ₹1,60,300.