Source:Bizz Buzz
Gold prices faced a dip on Monday due to reducing tensions of trade war between the U.S. and China with a stronger U.S. dollar. The changing dynamics of the market also did considerably shape gold rates in the domestic futures market.
Gold Price Dynamics:
Gold at MCX: June 5 contracts were reported down by 0.18%, trading around 94,818 per 10 grams at about 9:05 AM IST.
Global Gold: The price of gold stumbled down by more than 1% towards the end of the week since the pressure of safe-haven demand was reduced by easing trade conflicts between the U.S. and China.
Influence of Dollar Index:
The U.S. dollar index rose by as much as 0.3%, putting more weight on prices of gold by making the metal dearer for international purchases.
Geo-Political Developments:
U.S.-China Trade Talks: According to President Trump, the U.S. administration has been in contact with China to obtain a “good” trade deal. However, the president went on to say that tariffs on China would remain unless major concessions were made.
On Friday, China responded by lifting its retaliatory tariffs on certain U.S. imports and also rejected the claim that there are ongoing negotiations between the U.S. and China, Reuters reported.
U.S. Economic Data in the Spotlight:
Major economic reports: Investors are now looking forward to the following U.S. data releases:
- The Job Openings Report (Tuesday)
- Personal Consumption Expenditures (PCE) Data (Wednesday)
- The Non-Farm Payrolls Report (Friday)
These reports are expected to steer market expectations of the Federal Reserve’s interest rate path.
Expert Insights on Gold and Silver Levels:
1. Manoj Kumar Jain (Prithvifinmart Commodity Research):
“Gold has support at $3,300-3,274, while resistance is at $3,358-3,380 per troy ounce, and silver has support at $32.66-32.30, while resistance is at $33.30-33.70 per troy ounce in today’s session,” said Jain.
“MCX Gold has support at ₹94,400-93,660 and resistance at ₹95,500-96,040, while silver has support at ₹95,800-95,150 and resistance at ₹97,000-97,750,” Jain said.
Trading Strategy: Sell gold on any rise around ₹96,200 with a stop loss at ₹96,850 and a target of ₹94,400.
2. Rahul Kalantri (VP of commodities at Mehta Equities):
Gold: Support at $3,265–3,240, Resistance at $3,325–3,355 per troy ounce.
Silver: Support at $32.65–32.40, Resistance at $33.25–33.50 per troy ounce.
MCX Gold: Support at ₹94,250–93,580, Resistance at ₹95,450–96,490.
MCX Silver: Support at ₹95,380–94,550, Resistance at ₹97,150–97,950.
Conclusion: Traditionally, gold is viewed as a safe-haven asset, although geopolitical tensions easing and stronger dollar environment have put some downward pressure on it. Experts forecast that volatility will remain in place as the market awaits key economic data that will likely influence investor sentiment.
Disclaimer: This article is for educational purposes only. The views and recommendations expressed above are those of individual analysts or brokerage firms. We recommend investors consult certified professionals before making any investment decisions, as the nature and condition of the markets can change rapidly, as will individual circumstances.
