Gold Rate Surges on MCX Amid Easing Oil Prices and Dollar Weakness Following Trump's Iran Strike Reprieve

Gold Price Rises on MCX as US Dollar Drops Amid Iran Conflict Uncertainty

The gold price rose on the Multi Commodity Exchange (MCX) on Tuesday morning, May 19, following a decline in crude oil prices after US President Donald Trump paused strikes in Iran. However, uncertainty over the Middle East conflict capped gains for the yellow metal.

On the MCX, gold June futures rose by 0.17% to ₹1,59,674 per 10 grams, while MCX silver July futures declined by 0.30% to ₹2,75,824 per kg around 9:10 am.

The decline in crude oil prices, with Brent Crude falling 2% to trade below the $110 per barrel, impacted the demand for the US dollar. As a result, the dollar index dropped by more than 0.20%, making greenback-denominated bullion cheaper for buyers in other currencies.

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The Middle East conflict has kept oil prices higher for more than two months, creating a major macroeconomic challenge not only for oil importers like India, but also for several major economies globally. Prolonged higher oil prices can drive inflation, drag economic growth, lead to monetary tightening, and impact stock market performance.

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, gold has been under pressure since the Middle East conflict began, as surging oil prices intensified inflation fears, boosting expectations for further central bank interest rate hikes.

Ravi Singh, Chief Research Officer (Research) at Master Capital Services, noted that the broader structure remains firmly bullish as long as gold sustains above ₹1,57,000, while a deeper and more critical floor is placed near ₹1,55,000, acting as a major accumulation area.

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According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,515 and $4,470, while resistance is at $4,600 and $4,640 per troy ounce, and silver has support at $75.50 and $72, while resistance is at $80 and $82.80 per troy ounce in today's session.

On the MCX, Jain said gold has support at ₹1,58,200 and ₹1,57,400 and resistance at ₹1,60,300 and ₹1,61,100, while silver has support at ₹2,71,400 and ₹2,66,600 and resistance at ₹2,80,500 and ₹2,86,000.