Gold price today: Gold rate declined on the MCX on Thursday (14 May) morning due to profit booking after posting a strong 6% gain in the previous session following the hike in import duties on precious metals.
MCX gold June futures were 0.18% down at ₹1,61,897 per 10 grams, while MCX silver July futures were 1.07% down at ₹2,97,027 per kg around 9:10 am.
In the previous session, gold June futures jumped nearly 6%, and silver July futures surged more than 7.5% after the government hiked import duties on gold and silver to 15%.
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Gold rates declined on MCX on Thursday due to profit booking after a strong gain in the previous session. This followed the government’s hike in import duties on precious metals.
Global factors influencing prices include ongoing talks between U.S. President Donald Trump and Chinese President Xi Jinping, and news related to the US-Iran conflict. Additionally, rising US inflation and the potential for the US Fed to keep interest rates steady or hike them further are also key influences.
The Indian government hiked import duties on gold and silver to 15% from 6%. This move is aimed at discouraging imports and easing pressure on foreign exchange reserves, which has made bullion imports costlier and pushed up domestic gold prices.
On MCX, gold has support at ₹1,60,200 and ₹1,58,000, with resistance at ₹1,64,400 and ₹1,66,600. Silver has support at ₹2,94,400 and ₹2,88,000, with resistance at ₹3,04,000 and ₹3,10,000.
Yes, some experts suggest that with gold prices rising sharply, investors who hold gold might be overweight on the asset class. This could be a good time for them to rebalance their portfolios by streamlining them.
The focus is on the ongoing talks between U.S. President Donald Trump and Chinese President Xi Jinping.
This is the first time in nearly a decade that a US President has visited China. Trump, according to reports, will have a series of meetings with Xi in Beijing, expected to be centred on securing a durable trade deal and economic pacts, with potential discussions over the Middle East conflict as well.
Meanwhile, US inflation is rising, fanning worries that the US Fed may keep rates steady for a longer period and may even consider a hike if inflation shoots up further.
After the US consumer price index (CPI) for April came at a three-year high of 3.8%, US producer prices saw their biggest jump in four years last month.
The producer price index jumped 6% on an annual basis in April, clocking the biggest increase since December 2022 due to soaring costs for goods and services.
According to Ravi Singh, Chief Research Officer (Research) at Master Capital Services, the domestic duty-led rally is operating alongside complex global cues.
“While hotter-than-expected U.S. CPI data has pressured global spot prices by pushing out rate-cut expectations and strengthening the dollar, the domestic price gap created by the duty hike has shielded MCX from these headwinds,” said Singh.
“Traders are closely monitoring high-stakes discussions between Trump and Xi Jinping regarding trade and the West Asia crisis. Persistent oil-driven inflation and geopolitical instability continue to channel safe-haven demand into bullion, providing a solid foundation for the current bullish trajectory,” said Singh.
Higher interest rates tend to weigh on gold as it is a non-yielding asset.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,681 and $4,634, while resistance is at $4,740 and $4,770 per troy ounce, and silver has support at $86.60 and $84.00, while resistance is at $92 and $95 per troy ounce in today’s session.
“We suggest avoiding fresh buying positions in gold and silver at the current levels ahead of the U.S. and Chinese President’s summit outcomes,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
On the MCX, Jain said gold has support at ₹1,60,200 and ₹1,58,000 and resistance at ₹1,64,400 and ₹1,66,600, while silver has support at ₹2,94,400 and ₹2,88,000 and resistance at ₹3,04,000 and ₹3,10,000.
According to Singh, the market remains aggressively bullish, having successfully established a “higher high, higher low” pattern in this new price territory.
Singh said crucial support levels have now shifted significantly higher to ₹1,59,000 and ₹1,56,000, while immediate overhead resistance is pegged at ₹1,65,000.
“As long as prices sustain above these reinforced floors, the upward momentum is expected to persist,” said Singh.
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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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