Gold price sees volatility on MCX amid heightened focus on US-Iran diplomatic developments

Global Markets Remain Volatile Amid US-Iran Peace Deal Hopes

The gold price today experienced significant fluctuations on the Multi Commodity Exchange (MCX) on Friday morning, with market participants focusing on emerging signs of a potential US-Iran peace deal. Despite this volatility, a weaker dollar and a decline in crude oil prices supported the yellow metal.

At 9:05 am, MCX gold June futures were 0.04% down at ₹1,53,086 per 10 grams, while MCX silver May contracts were 0.34% up at ₹2,49,469 per kg.

International gold prices are poised to register a fourth consecutive weekly gain, driven by hopes for a US-Iran peace deal. This development is expected to ease fears of elevated inflation and the resulting higher interest rates.

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The US dollar, which appears set for a second weekly drop, fell to a six-week low in the previous session. A weaker dollar makes the greenback-backed yellow metal cheaper for overseas buyers.

Market analysts expect the US Federal Reserve to pause interest rates this month. The US Federal Open Market Committee (FOMC) will meet on April 28-29.

Positive signals are emerging on the geopolitical front, soothing market concerns. According to media reports, US President Donald Trump has said Iran agreed to drop nuclear weapons and return enriched uranium. Trump also stated that Israel and Lebanon have agreed to a 10-day ceasefire, describing the move as a step toward achieving long-term peace between the two countries.

Comparison of Gold Prices

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The West Asian war drove crude oil prices to multi-year high levels, lifting the US dollar and weighing on gold prices lately.

Market analysts believe that gold continues to trade with a volatile bias, reacting sharply to crude, dollar, and geopolitical updates. In the near term, gold is expected to remain range-bound between ₹1,52,500 and ₹1,56,000.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at ₹1,52,500 and ₹1,51,100, and resistance is at ₹1,54,200 and ₹1,55,000, while silver has support at ₹2,45,500 and ₹2,42,000 and resistance is at ₹2,51,500 and ₹2,55,000.

"We maintain our buy on dips strategy for gold until prices hold ₹1,48,800 for the target of ₹1,55,000 and ₹1,57,000, and for silver until prices hold ₹2,41,000 for the price targets of ₹2,55,000 and ₹2,61,000," said Jain.