Gold price today: Gold rate climbed on the MCX on Friday (8 May) morning on healthy spot demand and positive global cues, even as an elevated US dollar amid a rebound in crude oil prices capped gains.
MCX gold June futures were 0.42% up at ₹1,52,900 per 10 grams, while MCX silver July futures were 1% up at ₹2,61,153 per kg around 9:10 am.
The dollar index climbed by 0.20% after benchmark Brent Crude jumped over 1% to reclaim the $100 per barrel mark.
Fresh military exchanges in the Middle East drove oil prices higher. As per reports, the said on Thursday it intercepted Iranian attacks targeting three Navy ships in the Strait of Hormuz and carried out strikes on Iranian military facilities allegedly linked to assaults on American forces.
Gold prices have been under pressure since the US-Iran war started on 28 February this year. Domestic spot gold prices, as per MCX, have declined 5% since then, pressured by higher oil prices.
Higher crude oil prices can drive up inflation, dimming the prospects of interest rate cuts. While gold is considered an inflation hedge, high interest rates weigh on it because it is a non-yielding asset.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, underscored that the focus now is on the monthly U.S. employment report, due later today, which will offer cues on how the US Federal Reserve will move forward with monetary policy this year.
According to Trivedi, MCX gold June futures may appreciate to ₹1,53,000 per 10 grams as the undertone is positive in the international markets too.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, crude oil prices and ahead of the U.S. non-farm payroll data.
According to Jain, gold has support at $4664 and $4610, while resistance is at $4740 and $4800 per troy ounce, and silver has support at $78 and $75.50, while resistance is at $82.40 and $84.80 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,51,500 and ₹1,50,800 and resistance at ₹1,53,150 and ₹1,54,000, while silver has support at ₹2,55,500 and ₹2,51,000 and resistance at ₹2,62,000 and ₹2,66,600.
“We suggest buying silver on dips around ₹2,54,000 with a stop loss below ₹2,48,800 for the target of ₹2,60,000 and ₹2,63,500,” said Jain.
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