Gold Prices Surge on MCX Amid Dollar Decline, Amid Tensions Over US-Iran Diplomacy
Gold Prices Open Higher on MCX Amid Weakness in US Dollar
Gold prices opened higher on the Multi Commodity Exchange (MCX) on Thursday, April 16, amid weakness in the US dollar. Investors remained focused on emerging signs in the US-Iran conflict that could impact risk appetite. The MCX gold June futures rose by 0.50% to ₹1,54,668 per 10 grams, while MCX silver May futures jumped by more than 1% to ₹2,55,735 per kg in early deals.
| Market Indicator | MCX Gold June Futures | MCX Silver May Futures |
|---|---|---|
| Price Change | +0.50% | +1.00% |
| Price (₹) | ₹1,54,668 | ₹2,55,735 |
| Per Unit | 10 grams | 1 kg |
International gold prices, meanwhile, eased after hitting a one-month high amid speculation about the next round of US-Iran talks and the impact of geopolitical developments on the US interest rate trajectory. The dollar index declined by 0.20%, while Brent Crude prices were largely flat, trading near $95 per barrel.
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The high volatility in gold and silver prices is attributed to the returning investor risk appetite amid emerging signs that the US and Iran may find a way to end their conflict in the coming few days. US equity markets are near their record highs, while the Indian stock market sentiment has also improved. US President Donald Trump has signalled that the West Asian war is close to being over and has said that a second round of negotiations with Iran could take place in Pakistan within the next two days.
A final end to the US-Iran war can drive crude oil prices further lower, easing the concerns over inflation and growth slowdown. If both countries fail to reach an agreement, a prolonged period of high oil prices could stoke inflation and dim the prospects of US Fed rate cuts this year.
Experts believe gold and silver prices may remain volatile in the near term. Some of them recommend buying the dips. According to market analysts, gold has support at $4,800 and $4,770, while resistance is at $4,850 and $4,884 per troy ounce. Silver has support at $76.60 and $74, while resistance is at $82.80 and 85 per troy ounce in today's session.
| Market Indicator | Gold Support | Gold Resistance | Silver Support | Silver Resistance |
|---|---|---|---|---|
| Price (₹) | ₹1,52,600 | ₹1,55,000 | ₹2,48,800 | ₹2,55,500 |
| Price (₺) | $4,800 | $4,850 | $76.60 | $82.80 |
| Price (₺) | $4,770 | $4,884 | $74 | 85 |
Gold's long-term outlook remains intact due to increased geopolitical uncertainties and central bank buying amid a shift towards de-dollarisation. Analysts at Axis Bank expect gold prices to reach $6,000 per troy ounce by early 2027.
Investor Takeaway
Investors should be prepared for high volatility in gold and silver prices due to emerging signs of a potential US-Iran conflict resolution.
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