Gold rate today: Gold prices drop below Rs 97,000 per 10 grams after Iran-Israel ceasefire – what’s the outlook?
Gold rate today: Following Iran and Israel’s official ceasefire declaration by US President Donald Trump, MCX Gold August futures dropped by Rs 3,000, approximately 3%, reaching a low of Rs 96,422/10 grams during early trading, according to an ET report. Simultaneously, silver July futures decreased by Rs 760, or 0.6%, touching a low of Rs 1,06,011/kg.On Monday, both precious metals concluded positively in domestic and international markets. Gold August futures settled higher at Rs 99,388 per 10 grams, showing a 0.28% increase, whilst silver July futures finished at Rs 1,06,759 per kilogram, registering a 0.50% gain.The previous trading session saw both metals strengthen due to safe-haven purchasing following US strikes on Iranian nuclear facilities over the weekend. Gold prices reached $3,400 per troy ounce again, whilst silver prices surpassed $36 per troy ounce, though both remained below their daily peaks.“Changing circumstances in the Middle East every minute increased volatility in the precious metal segment,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.Subsequently, the US President’s unexpected announcement of an Israel-Iran ceasefire at midnight resulted in both precious metals experiencing profit-taking from their previous session highs.The dollar index experienced a decline, dropping under 98 levels, which could provide support for gold and silver valuations at the lower end. The US Dollar Index (DXY) was trading around 98.12, showing a reduction of 0.30 or 0.30%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and Fed Chairman’s testify but gold prices could hold their support level of $3,240 per troy ounce and silver prices could also hold $34.00 per troy ounce levels on a weekly closing basis,” he told ET.“Gold to remain strong amid ongoing political and economic uncertainties. Investors are also watching U.S. economic data this week after the Federal Reserve maintained its current interest rate policy,” noted Neha Quereshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.In her technical analysis, she indicated that gold encounters resistance near $3,400 in international markets. A successful breach could drive prices towards $3,435 and $3,452. Should the upward momentum continue, prices might reach the all-time peak of $3,500.
Trading Recommendations for Gold and Silver:
Manoj Kumar Jain outlines the following price levels for MCX:* Gold’s support levels are positioned at Rs 98,850-98,440, whilst resistance levels stand at Rs 99,800-1,00,200* Silver’s support levels are established at Rs 1,06,000-1,05,000, with resistance at Rs 1,07,400-1,08,000* For silver trading, Jain recommends purchasing at the Rs 1,05,000 level, setting a stop loss at Rs 1,04,000, aiming for Rs 1,07,000.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
