Gold Prices Fluctuate on MCX Amid Profit Booking and Elevated Crude Oil Costs

Gold Prices See Slight Uptick Amid US-Iran Peace Talks Uncertainty

Gold prices on the Multi Commodity Exchange (MCX) saw a slight uptick on Monday morning (27 April) due to profit booking as investors' focus remained on the progress of US-Iran peace talks. The talks have been marred by controversy, with the US-Iran war entering its second month. Despite a ceasefire between the two countries, the bones of contention between them remain unsettled.

The US dollar index declined by 0.10% during the session, supporting the yellow metal. The lower dollar makes gold cheaper for buyers in overseas currencies. On the MCX, gold June contracts were 0.12% up at ₹1,52,877 per 10 grams, while MCX silver May contracts were flat at ₹2,44,650 per kg around 9:10 am.

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In the previous session, gold June futures contract ended at ₹1,52,699 per 10 grams, rising about 0.60%, while silver May futures contract closed at ₹2,44,636 per kilogram, gaining over 1%. The dollar index decline and Brent Crude prices jumping over 1% to trade above the $106 per barrel level also contributed to the slight uptick in gold prices.

The US-Iran war, which began on 28 February, is completing two months. Despite a ceasefire between the two countries, the bones of contention between them remain unsettled. Iran's Foreign Minister Abbas Araghchi met with Pakistan's Field Marshal Asim Munir on Saturday morning in Islamabad and explained Iran's views on ending the war with the U.S. However, US President Donald Trump cancelled a planned trip by top envoys to resume negotiations with Iran in Islamabad.

Concerns over sustained inflationary pressures have risen significantly, dimming the prospects of interest rate reductions by the US Federal Reserve in the near future. The US Fed's policy outcome is due on April 29. Gold prices have given negative returns over the last two months, with domestic spot gold prices declining more than 5% since the US-Iran war started. However, year-to-date, the yellow metal is up 13% after a stellar 75% return in 2025.

Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold June futures to appreciate to ₹1,53,000 per 10 grams on Monday. Manoj Kumar Jain of Prithvifinmart Commodity Research provided technical analysis, suggesting support and resistance levels for gold and silver in today's session.

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According to Jain, gold has support at $4,710 and $4,681 while resistance at $4,770 and $4,800 per troy ounce and silver has support at $74.40 and $72, while resistance is at $78 and $80.40 per troy ounce in today's session. On the MCX, Jain said gold has support at ₹1,51,650 and ₹1,50,500 and resistance at ₹1,53,800 and ₹1,55,000, while silver has support at ₹2,41,400 and ₹2,38,000 and resistance is at ₹2,47,700 and ₹2,51,000.

"We suggest buying gold on dips until it holds ₹1,48,800 on a closing basis for the upside targets of ₹1,53,800 and ₹1,55,000 and buying silver until it holds ₹2,35,000 on a closing basis for the targets of ₹2,48,000 and ₹2,51,000," said Jain.