Gold Price Today: Gold prices drop by Rs 6,500/10 gm from record high level, silver at Rs 96,287/kg

As geopolitical tensions have started easing out, the demand for safe-haven buying has witnessed a sharp decline as Gold June futures contracts at MCX hit a day’s low of Rs 92,975/10 grams. This marks a sharp fall of nearly Rs 6,500 for the yellow metal from its peak of Rs 99,358/10 grams, made on April 22.

Meanwhile, the prices of silver July contracts were trading nearly 1% higher or by Rs 943 at Rs 96,287/kg around 10 am.

On Monday, gold and silver settled on a weak note in the domestic and international markets. Gold June futures contract settled at Rs 92,901 per 10 grams with a loss of 3.75%, and silver July futures contract settled at Rs 95,344 per kilogram with a loss of 1.43%.

The prices of gold and silver plunged amid the US-China trade deal, Indo-Pak ceasefire and gains in the dollar index and US bond yields.

Gold and silver showed a heavy sell-off at the start of the new week amid a trade deal between US-China in Switzerland. Both countries agreed to reduce trade tariffs substantially on each other for the period of 90 days, and returned confidence in the global markets.

The dollar index and the U.S. bond yields jumped after the announcement of trade deals. Today, the US Dollar Index, DXY, was hovering near the 101.60 mark, falling 0.19 or 0.19%.

“The Indo-Pak ceasefire over the weekend also eased safe-haven buying for precious metals. Gold prices slipped to one-month lows and silver prices also plunged amid major risk aversion in the global markets,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.

“Global equity markets showed solid strength and also pushed gold and silver prices lower. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions; gold prices could hold their key support level of $3,140 per troy ounce, and silver prices could also hold $31.40 per troy ounce levels,” he added.

How to trade gold?

Manoj Kumar Jain has highlighted the following ranges for gold and silver on MCX:

• Gold has support at Rs 92,400-91,770 and resistance at Rs 93,360-94,000
  
• Silver has support at Rs 94,400-93,650 and resistance at Rs 96,000-96,650
  

Jain suggests buying silver on dips and staying away from gold for some trading sessions.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,312/8 grams while pure gold (24 carat) prices stand at Rs 61,136/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,720/8 grams while pure gold (24 carat) prices stand at Rs 61,560/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,880/8 grams while pure gold (24 carat) prices stand at Rs 60,688/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,992/8 grams while pure gold (24 carat) prices stand at Rs 60,728/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)