Gold Prices Surge on MCX Amid Rising Demand and Global Optimism

Gold Price Rises on MCX Amid Global Cues and Crude Oil Rebound

The gold price on the Multi Commodity Exchange (MCX) climbed on Friday morning, driven by healthy spot demand and positive global cues. However, the elevated US dollar and a rebound in crude oil prices capped gains. As of 9:10 am, MCX gold June futures were up 0.42% at ₹1,52,900 per 10 grams, while MCX silver July futures rose 1% to ₹2,61,153 per kg.

The US dollar index climbed 0.20% after Brent Crude, the global benchmark for crude oil, jumped over 1% to reclaim the $100 per barrel mark. The surge in oil prices was driven by fresh military exchanges in the Middle East, including reports that the US military intercepted Iranian attacks targeting three Navy ships in the Strait of Hormuz and carried out strikes on Iranian military facilities allegedly linked to assaults on American forces.

Gold prices have been under pressure since the US-Iran war started on 28 February this year, with domestic spot gold prices declining 5% since then. Higher crude oil prices can drive up inflation, dimming the prospects of interest rate cuts. While gold is considered an inflation hedge, high interest rates weigh on it because it is a non-yielding asset.

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According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, the focus is now on the monthly US employment report, due later today, which will offer cues on how the US Federal Reserve will move forward with monetary policy this year. Trivedi expects MCX gold June futures to appreciate to ₹1,53,000 per 10 grams, driven by a positive undertone in international markets.

Comparison of Gold and Silver Prices

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today's session amid volatility in the dollar index, crude oil prices, and ahead of the US non-farm payroll data. According to Jain, gold has support at $4664 and $4610, while resistance is at $4740 and $4800 per troy ounce, and silver has support at $78 and $75.50, while resistance is at $82.40 and $84.80 per troy ounce in today's session.

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On the MCX, Jain said gold has support at ₹1,51,500 and ₹1,50,800 and resistance at ₹1,53,150 and ₹1,54,000, while silver has support at ₹2,55,500 and ₹2,51,000 and resistance at ₹2,62,000 and ₹2,66,600. Jain suggests buying silver on dips around ₹2,54,000 with a stop loss below ₹2,48,800 for the target of ₹2,60,000 and ₹2,63,500.