Source: The Economic Times
Gold price falls on April 23, 2025 on the Multi Commodity Exchange (MCX), as global attitude weakens and pulls the investor attitude down. This drop prolong the trend of weaker, safe haven demand as the dynamic market shift
MCX Gold and Silver Performance:
Gold Price Movement:
At 9:05 AM, the price of gold on MCX was ₹95,982 per 10 grams, a reduction of ₹1,358 or 1.40%The June contract opened lower at ₹96,500, a drop of ₹840 or 0.86% from the previous close of ₹97,350.
Gold continued its decline, hitting an intraday low of ₹95,457—shedding ₹1,883 during the session.
Silver Price Movement:
MCX silver was also down and fell 0.47% to ₹96,803 kg while it was also in correlation with fall in gold.
Global Market Impact:
International Price Trends:
Globally, gold prices retreated from recent highs due to a stronger US dollar and a rally in the stock market. This reduced gold’s appeal as a safe-haven asset. Spot gold fell 0.7% to $3,357.11 an ounce, while US gold futures dropped 1.5% to $3,366.80.
US Market Sentiment:
The drop also came as US President Donald Trump made optimistic comments about a potential trade deal with China. Trump proposed a deal that could “substantially” reduce tariffs on Chinese goods and than backed away from his earlier threats regarding Federal Reserve Chair Jerome Powell. This boosted overall market sentiment, reducing demand for protective assets like gold.
US Treasury Secretary Scott Bessent cautioned that while de-escalation is expected, formal negotiations with China have yet to begin and could take time.
Technical Analysis:
Kedia Advisory Insights:
“Gold prices have witnessed the biggest fall in recent weeks amid easing trade tensions and improving global risk-appetite. Technically, all the indicators also show that the gold prices are in overbought territory. Thus, we may expect a reversal in the yellow metal prices,” said Ajay Kedia, Director, Kedia Advisory.
“These stretched ratios suggest that gold’s outperformance may not sustain without correction, and industrial commodities may be poised for a rebound. Technically, such overbought conditions have often preceded a sectoral rotation or a pause in the bullish gold trend. Volatility remains high and gold has already rejected the upper resistance levels in the international market and in domestic markets. Thus, the view remains cautious in gold prices,” Kedia said.
Sectoral Rotation:
Technically, such overbought conditions often precede a sectoral rotation or a temporary pause in gold’s bullish trend. Given the current volatility, gold has also faced resistance at upper levels both internationally and domestically. Therefore, Kedia maintains a cautious outlook for gold prices in the short term.
Support and Resistance Levels:
MCX Gold:
- Support: ₹93,600
- Resistance: ₹96,940
MCX Silver:
- Support: ₹93,850
- Resistance: ₹96,700
With this week’s analysis having described the outlook as cautious, it is reasonable to expect further volatility for gold as the week draws to a close. As investors eyed key support and resistance levels and any shifts in broader macroeconomic factors that could impact prices.
