Gold prices on MCX rise amid delayed rate cut hopes and escalating Middle East tensions
Gold prices on MCX for June futures contracts saw a rise of Rs 208 or 0.29% to trade at Rs 70,876 per 10 grams, while MCX July silver contracts were up by Rs 742 or 0.92% to Rs 81,785 per kg. This increase can be attributed to the delay in hopes for a rate cut and escalating tensions in the Middle East.
Anticipation of Federal Reserve rate cuts and geopolitical tensions drive gold prices up
Gold prices firmed on Monday as there were expectations that the Federal Reserve would start cutting interest rates later in the year. Additionally, tensions in the Middle East contributed to the allure of the non-yielding bullion. The uncertainty in global markets has led investors to seek safe-haven assets like gold, driving up its prices.
Volatility in gold and silver markets amidst economic data and geopolitical developments
Gold and silver experienced significant volatility, initially bouncing back from their lows in response to lackluster U.S. job data. However, the precious metals struggled to maintain their gains amid easing geopolitical tensions. The dollar index and U.S. bond yields also retreated from their highs following disappointing U.S. economic indicators, providing additional support for gold and silver prices.
Key insights from the expert, Rahul Kalantri, on the gold and silver price levels
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted key levels for MCX gold and silver. According to Kalantri, gold finds support at Rs 70,520 and Rs 70,350, with resistance at Rs 70,980 and Rs 71,120. On the other hand, silver finds support at Rs 80,540-80,080, while resistance is at Rs 81,940 and Rs 82,580. These levels can help investors make informed decisions based on market trends and expert analysis.
Overall, the combination of delayed rate cut expectations and geopolitical tensions has led to a boost in gold prices, making it a favorable investment in the current market environment. Investors should closely monitor global developments and economic indicators to navigate the volatile precious metals market effectively.
