Today’s gold price gains were bolstered by a weak US dollar index that was trading close to a one-week low, which increased the appeal of bullion to other currency holders. The benchmark 10-year Treasury yields held steady at a level not seen in over a month.
As investors kept an eye on the precarious armistice between Israel and Iran,the price of gold stabilized after a steep decline in the previous session and opened higher on the Multi Commodity Exchange (MCX) on Wednesday.
At ₹97,311 per 10 grams,the MCX gold rate opened 0.29% higher than its closing price of ₹97,023. In addition, the price of MCX silver began 0.22% higher at ₹1,06,341 per kg than it had closed at ₹1,06,102.
The price of MCX gold was up ₹277, or 0.29%, at ₹97,300 per gram at 9:10 AM. At ₹1,05,216 per kg, the MCX silver pricing increased by ₹299, or 0.28%.
As the US currency and Treasury yields declined,gold prices steadied on international markets. The price of spot gold increased by 0.2% to $3,328.89 an ounce on Tuesday,following a two-week low. At $3,343.00,US gold futures increased by 0.3%. At $35.90 an ounce,spot silver remained stable.
The safe-have demand for the yellow metal was impacted by Tuesday ceasefire between Israel and Iran,which indicated that the air conflict between the two countries had ceased,at least temporarily.The previous session saw the MCX gold price plummet by 2.41%, or ₹2,394, to drop below the ₹97,000 mark.
A weak US dollar index that was close to a one-week low helped to boost today’s gold price gains,which made metal more appealing to investors of foreign currencies. The benchmark 10-year Treasury yields held steady at a level not seen in over a month.
In his testimony to Congress,US Federal Reserve Chair Jerome Powell stated that increased tariffs may start to drive up inflation this summer,which is crucial for the Fed’s evaluation of potential rate decreases,according to Reuters.
The first drop is anticipated to occur in September,and traders of Fed funds futures are already pricing in 60 basis points of rate decreases for 2025.
Outlook for Gold Prices :
According to Rahul Kalantri, VP of Commodities at Mehta Equities Ltd.,the price of gold has resistance at $3,348–3,365 and support at $3,300–3,277. The resistance for silver is at $36.30-36.55,while the support is at $35.50-35.20.
The price of MCX gold is supported between 96,450 and 95,910 and is resistant between 97,650 and 98,100. According to Kalantri,the price of silver has resistance between ₹1,05.850 and 1,06,500 and support between ₹104,280 and 103,600.
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