Gold and silver prices in India opened lower on Multi Commodity Exchange (MCX) on Tuesday, following a muted trend in global bullion prices, as investors await key details of the US-Iran peace deal.
for August futures contracts opened 0.01% lower at ₹1,52,891 per 10 grams as against its previous close of ₹1,52,916 level. MCX silver price for July futures contracts opened 0.4% lower at ₹2,50,457 per kg as compared to its previous close of ₹2,51,458 level.
At 9:20 AM, MCX gold price was trading higher by ₹114, or 0.07%, at ₹1,53,030 per 10 grams, while was down by ₹913, or 0.36%, at ₹2,50,545 per kg.
In the international market, prices were largely steady after rising to a more than one-week high in the previous session.
Spot gold price rose 0.2% to $4,315.87 per ounce, after rising as much as 3.6% on Monday. US gold futures for August delivery fell 0.3% to $4,337.10. Spot prices fell 1% to $69.29 per ounce.
A in the Gulf has been signed by the US and Iran, US President Donald Trump said, though details have yet to be made public and both countries said a permanent truce is yet to be negotiated.
The US dollar held near 10-day lows, supporting gold prices.
Markets also looked ahead to a series of central bank policy decisions this week, with the US Federal Reserve set to announce its first interest rate decision under new chair Kevin Warsh on Wednesday, and widely expected to leave interest rates unchanged.
According to the CME FedWatch tool, traders have scaled back expectations for a US Fed rate hike in December to 57% after the US-Iran peace deal, down from about 70% last week. Gold loses appeal in a high-interest-rate environment as it is a non-yielding asset.
Meanwhile, the (BOJ) on Tuesday raised interest rates by 25 basis points (bps) to 1.0%, its highest level since 1995.
Brokerage firm Citi has raised its 0-3 month gold price forecast by $500 to $4,500 per ounce.
Gold Price Outlook
Jigar Trivedi, Senior Research Analyst at IndusInd Securities expects MCX gold rate today to trade flat with a positive bias.
“MCX gold price has support at ₹1,52,500 level, while it may face resistance at ₹1,53,500 level. Investors can buy gold and the outlook remains neutral to positive,” said Trivedi.
Silver Price Outlook
The trend for MCX silver price today is likely to remain weak, said Trivedi, as he expects the white metal to see some correction.
“MCX silver price may find support at ₹2,49,000 level, while resistance is seen at ₹2,51,500 level. The outlook remains weak, and a correction in silver prices is anticipated,” said Trivedi.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.