Gold Rate Surges Over 1% on MCX Amid Weaker Dollar and Easing Crude Oil Prices, Amid Focus on US-Iran Diplomatic Developments
Gold Price Jumps Over 1% on MCX Amid Weaker US Dollar and Lower Crude Oil Prices
On Wednesday, May 6, the gold price surged more than 1% on the Multi Commodity Exchange (MCX) due to a weaker US dollar and a decline in crude oil prices. The MCX gold June futures rose by nearly ₹2,000, or more than 1%, to ₹1,51,740 per 10 grams, while the MCX silver July futures jumped by ₹6,300, or nearly 3%, to ₹2,50,724 per kg in early deals.
The previous session saw MCX gold's June contracts close at ₹1,49,838 per 10 grams, rising 0.3%, while MCX silver's July contracts closed at ₹2,44,420 per kg, gaining 0.2%. The gains in precious metals can be attributed to a decline in crude oil prices, which dropped for the second consecutive day, weighing on the US dollar.
| Market | Previous Session Close | Wednesday's Close | Change |
|---|---|---|---|
| MCX Gold June | ₹1,49,838 | ₹1,51,740 | ₹2,000 (1.3%) |
| MCX Silver July | ₹2,44,420 | ₹2,50,724 | ₹6,304 (2.6%) |
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The decline in crude oil prices, which fell 2% to trade below $110 per barrel, driven by expectations that oil supply through the Strait of Hormuz can resume as US President Donald Trump indicated a possible peace deal with Iran may be reached. The dollar index declined by 0.20%, making greenback-backed bullion cheaper for buyers in overseas currencies.
Gold has faced significant selling pressure since the start of the US-Iran war, as higher energy prices fueled inflation fears and raised expectations that central banks may keep interest rates higher for longer. There are also fears that a 'higher-for-longer' energy price may even lead to further policy tightening.
As per MCX data, domestic spot gold prices are down 7% since February 28, 2026 - the day when the combined forces of the US and Israel attacked Iran. According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,535 and $4,500 while resistance is at $4,622 and $4,681 per troy ounce, and silver has support at $72 and $70, while resistance is at $75.50 and $77.40 per troy ounce in today's session.
| Market | Support | Resistance |
|---|---|---|
| Gold (₹) | ₹1,49,100, ₹1,48,400 | ₹1,50,500, ₹1,51,800 |
| Silver (₹) | ₹2,41,400, ₹2,38,800 | ₹2,48,000, ₹2,51,500 |
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