Gold and silver prices rose on the MCX on Tuesday, 21 July, morning as easing crude oil prices amid reports of diplomatic efforts to end the Middle East conflict supported sentiment for precious metals.
MCX gold August delivery was 0.63% up at ₹1,42,279 per 10 grams, and MCX silver September contracts were 1.11% up at ₹2,20,825 per kg around 9:15 am.
US gold prices also rose after Brent crude prices dropped below $90 per barrel as the US ended its latest round of airstrikes targeting Iran.
However, tensions remain elevated despite signs of diplomatic efforts to end the conflict in the region.
The US military said it ended its latest round of airstrikes targeting Iran. Meanwhile, as per reports, Lebanese President Joseph Aoun is meeting with US President Donald Trump in Washington on Tuesday, as pressure builds for Beirut to disarm Hezbollah.
Iran-backed Houthis said they would impose a naval blockade on Saudi Arabia, opening a potential new front in the US-Iran war and raising the threat to global energy supplies and trade beyond the Gulf.
A fresh escalation in the US-Iran conflict drove oil prices above $90 per barrel, stoking fears of monetary tightening by the US Federal Reserve and other global central banks to curb higher inflation.
Gold prices tend to fall during monetary tightening as higher interest rates increase the opportunity cost of holding a non-yielding asset like gold.
Gold and silver prices have remained volatile in recent weeks, pressured by rising oil prices, a stronger US dollar, and growing expectations that the US Federal Reserve could resume interest rate hikes later this year.
“The US-Iran war is pushing crude oil prices higher and reigniting inflation fears. The dollar index is rising, and the U.S. 10-year bond yields are also trading steady at higher levels. The U.S. Fed monetary policy meetings later this month and any peace proposal in the Middle East could be a trend decider for bullion markets,” Manoj Kumar Jain of Prithvifinmart Commodity Research noted.
“We suggest long-term investors could accumulate gold and silver through SIP in this market fall, while traders must book profits on every rise, maintaining a stop loss below the given support levels on a closing basis,” said Jain.
Gold and silver prices: Key levels to watch
As per Jain, gold has support at $3,989 and $3,945, while resistance is at $4,040 and $4,074 per troy ounce, and silver has support at $56.20 and $55.50, while resistance is at $57.70 and $58.50 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,40,850 and ₹1,40,400, and resistance at ₹1,42,000 and ₹1,43,650, while silver has support at ₹2,16,000 and ₹2,14,400 and resistance at ₹2,20,000 and ₹2,23,100, said Jain.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, believes MCX gold August futures may appreciate to ₹1,42,000 per 10 grams amid flat-to-positive global sentiment.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, ₹1,40,000 remains the immediate support for MCX Gold, while ₹1,42,500 may act as the key resistance over the next few sessions.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article 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.
About The Author
