Gold price today: Gold rate on MCX dropped on Monday (18 May) morning as higher crude oil prices stoked inflation concerns and fuelled worries of possible near-term monetary tightening.
MCX gold June futures were down 0.43% at ₹1,57,858 per 10 grams, while MCX silver July futures were down 1.24% at ₹2,68,511 per kg around 9:05 am.
Higher crude oil prices increased demand for the dollar, driving the dollar index up by more than 0.10%. A stronger dollar makes gold denominated in U.S. dollars more expensive for buyers in other currencies, weighing on demand for the yellow metal.
Crude oil benchmark Brent Crude jumped 2% to trade above the $111 per barrel after a drone attack near a nuclear power plant in the UAE, which flared up hostilities in West Asia.
US President Donald Trump on Sunday (May 17) warned Iran to act fast as both sides have not been able to settle their conflict, and the Strait of Hormuz, a critical waterway for global crude supply, remains effectively closed.
Tensions between the US and Iran have kept oil prices elevated for more than two months, stoking fears of an inflation flare-up. Retail inflation in the US has posted its biggest annual jump in three years. If inflation rises further, the US Fed may decide to even hike rates.
Gold, which is considered a hedge against inflation, tends to perform poorly amid elevated rates because it is a non-yielding asset.
According to Ravi Singh, Chief Research Officer at Master Capital Services, crucial support has shifted to ₹1,57,100, which aligns with previous structural peaks, followed by a deeper systemic floor at ₹1,56,000.
“We suggest wait for some stability in the bullion markets for taking fresh positions,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
On the upside, Singh said, immediate resistance is pegged at ₹1,61,000; a sustained close above this level is required to confirm the next leg of the bull run.
“As immediate Iran-Israel tensions show signs of simmering rather than escalating, some of the safe-haven premium is being unwound. However, with domestic supply tightened by the 15% import duty, MCX gold continues to maintain a distinct premium, providing a solid foundation even as global spot prices navigate shifting macro headwinds,” said Singh.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,515 and $4,470, while resistance is at $4,600 and $4,640 per troy ounce, and silver has support at $75.50 and $72, while resistance is at $80 and $82.80 per troy ounce in today’s session.
MCX gold has support at ₹1,57,000 and ₹1,55,500, and resistance is at ₹1,59,400 and ₹1,60,650, while silver has support at ₹2,66,600 and ₹2,61,200 and resistance at ₹2,77,700 and ₹2,83,000, said Jain.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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