Gold prices have been volatile lately amid the dollar's rise, largely due to elevated crude oil prices. (An AI-generated image)Gold price today: Gold rate on the MCX dipped on Tuesday, April 7, largely due to profit booking, as the US dollar index remained above the 100 mark, weighing on gold prices.
US President Donald Trump's renewed aggression against Iran has kept Brent crude oil prices above $110 a barrel, fuelling demand for the US dollar.
Around 9 am IST on Tuesday, Brent Crude was trading over 1% higher at $111 per barrel.
According to reports, Trump on Monday said during a White House press conference that Iran could be "taken out in one night", as his final Tuesday deadline to reopen the Strait of Hormuz fast approaches.
MCX gold June futures slipped by ₹350, or 0.20%, to ₹1,49,625 per 10 grams, while MCX silver May contracts declined by nearly ₹1,600, or 0.70%, to ₹2,31,800 per kg in early deals on Tuesday.
Gold and silver rates have seen a significant correction since the war in West Asia began, as rising crude oil prices drove the US dollar higher and raised concerns about inflation, dimming the prospects of near-term rate cuts by the US Federal Reserve.
Every rise in gold prices is followed by some profit booking. In the previous session, the MCX gold June futures contract settled at ₹1,49,981 per 10 grams, gaining 0.20%, and the silver May futures contract settled at ₹2,33,379 per kilogram, rising 0.38%.
"Gold and silver show very high volatility amid uncertainty that persists due to the U.S.-Iran war. The U.S. President’s ultimatum to Iran to end the war will end today, and the market is in fear of the U.S. action against Iran. The dollar index is trading steady near 100 marks and limiting gains of gold and silver," Manoj Kumar Jain of Prithvifinmart Commodity Research, noted.
"The U.S. job data released on Friday was also better-than-expected as 1,78,000 jobs were created in March against expectations of 65,000 jobs, and the unemployment rate also dropped to 4.3% and limits gains of precious metals. However, some safe-haven buying is supporting both precious metals at lower levels," Jain said.
According to Jain, gold has support at $4,640 and $4,615, while resistance is at $4,720 and $4,770 per troy ounce, and silver has support at $70.70 and $68, while resistance is at $76 and $78.40 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,48,500 and ₹1,47,200 and resistance is at ₹1,51,100 and ₹1,52,600, while silver has support at ₹2,29,200 and ₹2,25,000 and resistance at ₹2,36,600 and ₹2,41,000, said Jain.
Jain suggests buying gold on dips around ₹1,48,000 with a stop loss below ₹1,46,600, targeting ₹1,50,500, and buying silver on dips around ₹2,29,000 with a stop loss below ₹2,24,400, targeting ₹2,36,000.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold June futures may find support near ₹1,49,000 per 10 grams and appreciate during the session. MCX silver May futures may find support near ₹2,32,000 per kg, in tandem with the global trends, said Trivedi.
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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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