Gold price today: MCX gold rate dropped in the morning trade on Wednesday, 20 May, due to profit taking amid a rise in the US dollar and bond yields.
MCX gold June futures were 0.60% down at ₹1,58,137 per 10 grams, while MCX silver July futures were 0.80% down at ₹2,68,000 per kg around 9:05 am.
The dollar index hovered near its six-week high of 99.41, while the benchmark US 10-year bond yields hit a more than one-year high of 4.69%, weighing on gold prices.
A stronger dollar makes gold denominated in dollars more expensive for buyers in other currencies, while elevated bond yields raise the opportunity cost of holding non-yielding bullion.
However, easing crude oil prices and hopes for a potential U.S.-Iran peace capped losses for the yellow metal.
Crude oil benchmark Brent crude declined by half a per cent after US President Donald Trump on Tuesday, May 19, said that the war with Iran will end “very quickly”. He also claimed that Iran wanted to make a deal “so badly”.
The focus now is on the minutes of the US Fed's last policy meeting for cues on what policymakers are thinking about inflation and rate trajectory amid soaring energy costs driven by the West Asian conflict.
Key levels to watch
Ravi Singh, Chief Research Officer (Research) at Master Capital Services, highlighted that gold prices are now hovering around the key psychological zone of ₹1,59,000 and ₹1,60,000, suggesting the market has entered a short-term consolidation phase following the recent vertical up-move.
Singh said immediate support for the MCX gold price is now placed near ₹1,57,500, which aligns with the recent swing base and breakout area. A decisive close below this region may trigger extended profit-booking toward the broader support zone around ₹1,55,000.
"Immediate resistance is seen near ₹1,61,000, while the bigger hurdle remains around ₹1,63,000 and ₹1,63,300, where sellers previously regained control. A sustained breakout above this range could revive bullish momentum and open room for another leg higher in the ongoing uptrend," said Singh.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,454 and $4,420, while resistance is at $4,522 and $4,570 per troy ounce, and silver has support at $72 and $69.10, while resistance is at $76.60 and $78.80 per troy ounce in today’s session.
MCX gold has support at ₹1,57,700 and ₹1,56,650, and resistance is at ₹1,60,350 and ₹1,61,100, while silver has support at ₹2,66,600 and ₹2,63,000 and resistance at ₹2,74,400 and ₹2,80,000, 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.
