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Gold Prices Dip Below Rs 1.5 Lakh: What Investors Need to Know
In the international market, gold prices took a sharp plunge on Monday, falling over 1%. This drop reflects broader market dynamics, including a stronger dollar and heightened tensions in the Middle East, which have tempered expectations for interest rate cuts by the U.S. Federal Reserve.
Current Market Overview:
– Gold Futures: For June 2026 delivery, gold futures declined by Rs 1,047 (0.7%), settling at Rs 1,48,633 per 10 grams.
– Silver Futures: MCX silver for May 2026 decreased by Rs 2,030 (1%), now priced at Rs 2,30,465 per kg.
– International Gold Prices: Spot gold dropped by 1.2%, landing at $4,620.68 per ounce. U.S. gold futures for April delivery decreased by 0.7% to $4,647.10. Spot silver followed suit, falling 1% to $72.28 per ounce.
Tensions escalated significantly on Sunday when U.S. President Donald Trump issued a warning to Tehran, indicating potential attacks on Iran’s power plants and bridges should they not reopen the strategic Strait of Hormuz.
Impact of Market Changes:
– Monetary Policy Adjustments: Market expectations have dramatically shifted, with traders now largely dismissing the likelihood of any interest rate cuts this year. Initially, there were anticipations of two rate reductions.
– Volatility Ahead: Investors should brace for volatility, with fluctuations in the dollar index and crude oil prices influenced by the ongoing U.S.-Iran conflict.
What Should Investors Do?
Manoj Kumar Jain from Prithvi Finmart emphasizes the current volatility of precious metals. Both gold and silver are expected to hold strong support levels shortly:
– Gold Support: Expected between $4,620–$4,580, with resistance at $4,720–$4,770 per troy ounce.
– Silver Support: Projected at $70.70–$68.00, while resistance is anticipated at $76.00–$78.40 per troy ounce.
For the domestic market:
– Gold on MCX: Support is seen at Rs 1,47,200–Rs 1,45,500, with resistance at Rs 1,51,100–Rs 1,53,350.
– Silver on MCX: Anticipates support between Rs 2,28,000–Rs 2,22,400 and resistance at Rs 2,37,700–Rs 2,42,200.
Investment Recommendations:
– Investors are advised to book profits on long positions during price upticks and to wait for corrective dips before entering new long positions in both gold and silver.
Current Gold Prices in Major Cities:
– Delhi:
– Standard gold (22 carat): Rs 1,10,792/8 grams
– Pure gold (24 carat): Rs 1,20,856/8 grams
– Mumbai:
– Standard gold (22 carat): Rs 1,10,672/8 grams
– Pure gold (24 carat): Rs 1,20,736/8 grams
– Chennai:
– Standard gold (22 carat): Rs 1,11,592/8 grams
– Pure gold (24 carat): Rs 1,21,736/8 grams
– Hyderabad:
– Standard gold (22 carat): Rs 1,10,672/8 grams
– Pure gold (24 carat): Rs 1,20,736/8 grams
Disclaimer: The views and recommendations expressed by experts are their own and do not necessarily represent the views of The Economic Times.
As investors navigate these changes in gold and silver pricing, understanding the market forces at play will be vital for informed decision-making. Staying abreast of geopolitical developments and economic indicators will be crucial in this fluctuating market landscape.