Gold Surges 1.41% to $4,633 Amid Dollar Weakness, Silver Gains 2.49%

Precious Metals Trade Higher Amid Marginal Decline in Brent Crude Prices and Weaker Dollar

On early May 6 trade, precious metals saw a surge in value as Brent crude prices declined marginally and the dollar weakened. Gold prices traded 1.41 percent higher to $4,632.90 per ounce on early Comex trade, while silver inched 2.49 percent up to $75.41 per ounce.

Domestic gold futures for June delivery closed the Tuesday MCX trade 0.06 percent higher to Rs 1,49,838 per 10 grams of 24-karat purity. Silver also saw a marginal increase of 0.22 percent to Rs 2,44,420 per kilogram. Brent crude for July delivery dropped $1.52 to $108.35 a barrel, while US West Texas Intermediate crude for June fell $1.50 to $100.77. The decline in crude prices was attributed to hopes of de-escalation of US-Iran tension following the US signaling that it may be nearing a deal with Iran.

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Gold prices vary as per purity, with the price of 10 grams of 24-karat, 22-karat, and 18-karat gold moving in different directions. Analysts are attributing the mild recovery in gold prices to buying interest at lower levels, with markets entering a data-heavy week.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, sentiment remains cautious despite the mild recovery. He estimates that the broader market movement will be dependent on the dollar and yield reactions to data. Technically, support is seen near Rs 1,49,000, while resistance is placed around Rs 1,51,500, with $4,500 acting as a key base support on the international side.