Gold prices in India have declined since the US-Iran war started amid a rise in the dollar and crude oil prices. (Photographed by Hemant Mishra/ Mint)AI Quick ReadGold rate today: Gold prices rose on the MCX on Thursday, April 16, morning amid the US dollar's weakness, while investors remained focused on emerging signs in the US–Iran situation that will impact risk appetite.
MCX gold June futures rose abut 0.50% to ₹1,54,668 per 10 grams, while MCX silver May futures jumped by more than 1% to ₹2,55,735 per kg in early deals.
International gold prices, meanwhile, eased after hitting a one-month high amid speculation about the next round of US-Iran talks and the impact of geopolitical developments on the US interest rate trajectory.
The dollar index eased by 0.20%, while Brent Crude prices were largely flat, trading near the $95 per barrel mark.
Gold and silver prices are witnessing high volatility as investor risk appetite appears to be returning amid emerging signs that the US and Iran may find a way to end their conflict in the coming few days. US equity markets are near their record highs, while the Indian stock market sentiment has also improved.
US President Donald Trump, according to media reports, has signalled that the West Asian war is close to being over and has said that a second round of negotiations with Iran could take place in Pakistan within the next two days.
A final end to the US-Iran war can drive crude oil prices further lower, easing the concerns over inflation and growth slowdown. If both countries fail to reach an agreement, a prolonged period of high oil prices could stoke inflation and dim the prospects of US Fed rate cuts this year.
Experts believe gold and silver prices may remain volatile in the near term. Some of them, however, recommend buying the dips.
"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, crude oil prices and possible second round of peace talks between the US and Iran. We maintain our buying on dips strategy for both precious metals for the price target of ₹1,57,000 for gold and ₹2,61,000 for silver," said Manoj Kumar Jain of Prithvifinmart Commodity Research.
According to Jain, gold has support at $4,800 and $4,770, while resistance is at $4,850 and $4,884 per troy ounce. Silver has support at $76.60 and $74, while resistance is at $82.80 and 85 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,52,600 and ₹1,51,150 and resistance is at ₹1,55,000 and ₹1,56,600, while silver has support at ₹2,48,800 and ₹2,44,400 and resistance is at ₹2,55,500 and ₹2,61,000.
Gold's long-term outlook remains intact due to increased geopolitical uncertainties and central bank buying amid a shift towards de-dollarisation.
Analysts at Axis Bank expect gold prices to reach $6,000 per troy ounce by early 2027.
"We continue to align our views on gold, global rates and the US dollar, seeing moves towards fiscal dominance, leading to a slight weakening in the broad dollar and support to gold prices. We continue to see prices rise towards $6,000 per troy ounce with Asian demand buying the dip as per past history, though the path to this might not be as smooth as increases so far," said Axis Bank.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.
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