Gold Prices Plunge on MCX Amid Strengthening US Dollar and Uncertainty Over US-Iran Tensions

Gold Price Declines on MCX Amid Strong US Dollar and Rising Crude Oil Prices

The gold price declined on the Multi Commodity Exchange (MCX) on Monday, April 6, morning, due to profit booking driven by a stronger US dollar. The US-Iran war has kept crude oil prices at higher levels, raising inflationary concerns. Additionally, strong US jobs data has further dimmed the prospects of a US Federal Reserve rate cut in the near future.

The MCX gold June futures dropped by ₹1,400, or nearly 1%, to ₹1,48,298 per 10 grams, while MCX silver May contracts declined by over ₹2,800, or more than 1%, to ₹2,29,651 per kg in early deals.

The dollar index remained above 100, keeping the yellow metal expensive in overseas markets. The rise in the dollar index is largely due to soaring crude oil prices. Since crude oil is mostly traded in dollars, a rise in commodity prices increases demand for the dollar.

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Brent Crude Reaches Multi-Year High

Brent Crude traded near $110 per barrel on Monday morning, marking a multi-year high. The US-Iran war, which began on February 28, has entered its sixth week. The ongoing conflict has led to a significant increase in crude oil prices.

US Nonfarm Payrolls Data Dims Hopes of Rate Cut

Robust U.S. nonfarm payrolls data has dimmed hopes of a rate cut by the US Federal Reserve this year. The data shows that U.S. nonfarm payrolls increased by 1,78,000 jobs in March, the most since December 2024, while the unemployment rate fell to 4.3%.

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Market Experts Weigh in on Gold Prices

Experts highlight heightened volatility in gold prices. They suggest short-term traders should consider booking profits on the rise. Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index, rising crude oil prices, and the US-Iran war.

Support and Resistance Levels for Gold and Silver

According to Jain, gold has support at $4,620 and $4,580 while resistance is at $4,720 and $4,770 per troy ounce, and silver has support at $70.70 and $68, while resistance is at $76 and $78.40 per troy ounce in today's session. On the MCX, gold has support at ₹1,47,200 and ₹1,45,500 and resistance is at ₹1,51,100 and ₹1,53,350, while silver has support at ₹2,28,000 and ₹2,22,400 and resistance is at ₹2,37,700 and ₹2,42,200, said Jain.

Jigar Trivedi, Senior Research Analyst at IndusInd Securities, highlighted that gold rates are down roughly 12% since the US-Iran conflict began, as surging energy prices fueled inflation concerns and strengthened expectations of interest rate hikes. According to Trivedi, MCX gold June futures are likely to drop to ₹1,47,500 per 10 grams as the trend is weak in the world markets. On the flip side, ₹1,49,500 per 10 grams is the resistance, Trivedi said.