Gold price today: Gold rose by almost 1% on the MCX on Thursday, March 5, morning, amid increased safe-haven demand amid the ongoing US-Iran war. However, the dollar’s rise and the weakening of near-term rate-cut expectations from the US Federal Reserve capped gains for the yellow metal.
MCX gold April futures rose by more than ₹1,600, or 1%, to ₹1,63,142 per 10 grams, while MCX silver May futures jumped nearly 2% to ₹2,70,501 per kg.
In the previous session, the MCX gold April futures contract ended at ₹1,61,525 per 10 grams, rising 0.30% and the MCX silver May futures contract closed almost flat at ₹2,65,560 per kilogram.
Meanwhile, the dollar index climbed by 0.20% to 98.98, making greenback-backed gold expensive in other currencies. The dollar index has gained over 1% this week so far amid prospects of a delay in the US Fed’s rate cut amid rising inflationary pressures from rising commodity prices driven by the US-Iran war.
According to CME Group’s FedWatch tool, market participants expect the US central bank to maintain interest rates steady in March. The focus is on the weekly U.S. jobless claims data due later on Thursday and the U.S. employment data for February, due on Friday, for more cues on the Fed’s interest rate trajectory.
On the geopolitical front, the US-Iran war continues. As per the US Central Command’s Wednesday update, nearly 2,000 targets across Iran, including its ballistic missile hubs, naval assets, and its intelligence services, have been struck by the US and Israel since Operation Epic Fury began.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. He expects gold to find support at $5,080 and $5,034, while resistance may be at $5,220 and $5,280 per troy ounce. For silver, Jain sees support at $80.80 and $76.60, while resistance is at $86.40 and $90.00 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,59,800 and ₹1,57,700 and resistance is at ₹1,63,200 and ₹1,64,400, while silver has support at ₹2,61,600 and ₹2,55,500 and resistance is at ₹2,71,000 and ₹2,78,000.
“We suggest booking profits in gold and silver at higher levels and avoid buying at higher levels once gold starts sustaining above ₹1,64,400 and silver starts sustaining above ₹2,78,000 levels,” said Jain.
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Disclaimer: This story is for educational purposes only. 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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