Gold Market Update

Key Takeaways:

• The global gold market has witnessed a sharp decline in prices, with the MCX gold rate ending at ₹1,44,825 per 10 gm and the COMEX gold rate at $4,574.90 per troy ounce.
• Market experts predict that the downtrend in gold prices may continue, with potential targets at ₹1,27,000 per 10 gm and $4,250 per ounce.

Market Analysis:

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The global gold market is navigating a complex macro environment, with geopolitical escalation and expectations of monetary tightening pulling in opposite directions. The intensifying US-Iran war has significantly elevated global energy risk premiums, triggering a sharp surge in crude oil prices and raising concerns of imported inflation globally.

Central Banks' Stance:

Global central banks, including the US Federal Reserve, the Bank of Japan, the Bank of Canada, and the Bank of England, have adopted a cautious-to-hawkish approach to interest rates. This has strengthened the US dollar index, which has rallied sharply from around 95.50 to above 100 levels in recent weeks.

Gold Price Outlook:

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Market experts expect the bears' grip to continue further, with a near-term trading range seen between ₹1,40,000 to ₹1,47,000. The MCX gold rate today is encountering strong resistance near ₹1,70,000 per 10 gm, with ₹1,65,000 acting as an important near-term pivot.

Key Levels to Watch:

• ₹1,70,000 per 10 gm (resistance)
• ₹1,65,000 per 10 gm (near-term pivot)
• ₹1,35,000 per 10 gm (downside target)
• ₹1,27,000 per 10 gm (downside target)
• $5,420-$5,450 per ounce (resistance)
• $5,280 per ounce (critical level to revive uptrend)
• $4,250 per ounce (downside risk)