Gold price today: Gold rate dropped on the MCX on Tuesday, 26 May, morning due to profit booking as persisting uncertainty over a potential US-Iran deal keeps oil prices up, stoking inflation fears and raising the possibility of interest rate hikes.
MCX gold June futures were 0.24% down at ₹1,58,699 per 10 grams, while MCX silver July futures were 1.22% down at ₹2,73,349 per kg around 9:10 am.
After falling below $96 per barrel on 25 May, Brent Crude prices jumped by 1% to trade near $98 per barrel on Tuesday morning, driving the dollar index higher and fuelling concerns about a spike in inflation.
Oil prices jumped after US forces conducted strikes in southern Iran against targets, according to media reports.
Meanwhile, negotiations with Iran are on, but they are reportedly not going smoothly. Secretary of State Marco Rubio said there’s a lot of back-and-forth over the specific language in the initial document.
Higher inflation prints may lead to interest rate hikes in major economies worldwide, including the US and India. While gold is considered a hedge against inflation, it tends to weaken during periods of monetary tightening because it is a non-yielding asset.
“Heightened uncertainty in the Middle East keeps investors cautious about inflation risks, weighing on gold prices. US President Donald Trump has said talks with Tehran were progressing well, but warned that additional attacks could follow if negotiations broke down,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted.
Trivedi believes MCX gold June futures may drop to ₹1,58,800. On the flip side, ₹1,60,000 may be a cap for intraday today.
According to Ravi Singh, Chief Research Officer (Research) at Master Capital Services, immediate support for gold is placed near ₹1,57,500, followed by a stronger base around ₹1,54,000.
On the upside, resistance is seen near ₹1,60,000, while a sustained breakout above ₹1,63,000 could trigger fresh bullish momentum in the coming sessions, said Singh.
“We suggest buying gold in the range of ₹1,58,500 to ₹1,57,700 with a stop loss below ₹1,56,650 for the target of ₹1,59,350 and ₹1,60,300,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,522 and $4,484, while resistance is at $4,610 and $4,640 per troy ounce, and silver has support at $76.60 and $74, while resistance is at $80.40 and $82.80 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,58,200 and ₹1,57,700 and resistance is at ₹1,59,850 and ₹1,60,600, while silver has support at ₹2,73,300 and ₹2,70,000 and resistance is at ₹2,80,000 and ₹2,83,350, 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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