Gold prices declined in India’s domestic futures market on Thursday morning, pressured by a strengthening US dollar and reduced concerns over the US-China trade dispute and India-Pakistan tensions.
The MCX Gold June 5 contract fell 0.88% to trade at ₹91,450 per 10 grams around 12:10 PM. In the previous session, the same contract dropped nearly 1.5%, closing at ₹92,265 per 10 grams.
The recent decline in gold and silver prices has been driven by progress in US-China trade negotiations, which has reduced demand for safe-haven assets. Similarly, easing tensions between India and Pakistan have boosted investor appetite for riskier assets, further dampening bullion demand.
Over the past week, MCX Gold prices have fallen more than 3%.
“On Wednesday, the June gold futures contract settled at ₹92,265 per 10 grams, down 1.48%, while July silver futures closed at ₹95,466 per kilogram, down 1.34%. Both metals struggled to hold gains from earlier sessions and dropped amid easing safe-haven demand due to improving US-China trade relations and reduced global market risk aversion,” noted Manoj Kumar Jain, Commodity Research Analyst at Prithvifinmart.
Meanwhile, the dollar index remained volatile, putting additional pressure on precious metals. With US inflation data showing moderate increases, expectations for Federal Reserve interest rate cuts have diminished, creating further headwinds for gold prices.
According to a Bloomberg report, Federal Reserve Bank of San Francisco President Mary Daly said the US economy is strong enough for policymakers to adopt a patient stance while assessing the impact of recent policies on businesses and households.
Expert Views on Gold and Silver Trading
Manoj Kumar Jain recommends caution for traders, advising against initiating new positions in precious metals amid this week’s expected volatility.
“We anticipate gold and silver prices to remain volatile due to fluctuations in the dollar index and key global economic data releases. We advise staying away from fresh positions in precious metals today,” Jain said.
For Thursday’s session, Jain identified key support and resistance levels as follows:
- Gold support: $3,164–3,140 per troy ounce; resistance: $3,210–3,234
- Silver support: $32.10–31.80 per troy ounce; resistance: $32.74–33.00
In Indian rupees, MCX Gold support lies between ₹91,770 and ₹91,360, with resistance at ₹92,650 to ₹93,100. Silver support ranges from ₹94,800 to ₹94,200, with resistance between ₹96,000 and ₹96,650.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, provided similar outlooks:
- Gold support at $3,130–3,100; resistance at $3,200–3,220
- Silver support at $31.75–31.55; resistance at $32.30–32.65
- In INR, gold support at ₹91,350–90,780; resistance at ₹92,450–92,690
- Silver support at ₹94,380–93,550; resistance at ₹95,950–96,750
Renisha Chainani, Head of Research at Augmont, pointed out that gold prices recently fell below $3,200 (around ₹92,000).
“With the double-top neckline support broken, further downside toward $3,000–3,050 (₹87,000–88,000) is expected in the short term,” Chainani said.
However, Chainani remains optimistic on silver, anticipating upward momentum as trade tensions ease. “Silver prices are likely to reach $34 (₹99,000) and $35 (₹1,02,000) in the coming days,” she added.
