Gold rate slips on MCX amid dollar's rise; geopolitical risks, Trump tariff uncertainties limit losses
MCX gold April futures were 0.10% down at ₹1,61,660 per 10 grams around 9:15 am. MCX silver May futures were 0.57% down at ₹2,66,969 per kg at that time.
Gold price today: Gold rate on the MCX eased on Thursday (March 12) morning amid profit booking, tepid spot demand, and the dollar's rise against major peers. However, persisting geopolitical risks and uncertainties over the US tariff policies capped losses for the precious metal.
MCX gold April futures were 0.10% down at ₹1,61,660 per 10 grams around 9:15 am. MCX silver May futures were 0.57% down at ₹2,66,969 per kg at that time.
The dollar index rose by 0.30%, making greenback-backed bullion expensive for overseas buyers.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that gold prices have declined amid surging oil prices, which have heightened inflationary risks and reduced the likelihood of central bank interest rate cuts.
Brent Crude prices jumped 10% to trade above $100 per barrel, as fears of a US-Iran war lasting longer overshadowed a coordinated release of oil reserves by major economies.
According to Trivedi, markets believe the emergency oil release may be insufficient, even after the IEA agreed to its largest-ever release of 400 million barrels.
Trivedi believes MCX gold April futures may drop to ₹1,60,500 as the yellow metal trades with a negative undertone.
Meanwhile, the combined attack of the US and Israel, which started on February 28, remains intense. The exchange of missiles from both sides continues. According to AFP, the Israeli military said more missiles from Iran were heading towards Israel.
According to an ANI report, Iranian President Masoud Pezeshkian has indicated that the only path to ending the war is the acceptance of Iran's undeniable rights and the imposition of decisive international guarantees against future aggression.
Heightened geopolitical risks are a key positive for gold, but surging crude oil prices and a firming US dollar are weighing on the yellow metal.
Meanwhile, according to media reports, the Trump administration has initiated a new trade investigation against 16 major trading partners, including India, China and the European Union, targeting excess industrial capacity.
After the US Supreme Court verdict, US President Donald Trump imposed a 10% tariff for 150 days. Market participants fear that Tariff-related uncertainties will persist as tariffs remain central to Trump's global strategy.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week.
He said gold has support at $5,145 and $5,100, while resistance is at $5,220 and $5,264 per troy ounce, and silver has support at $82.80 and $79.10, while resistance is at $88.00 and $90.40 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,59,800 and ₹1,59,000, and resistance at ₹ 1,62,700 and ₹1,63,500, while silver has support at ₹2,65,500 and ₹2,61,600, and resistance at ₹2,71,000 and ₹2,75,000.
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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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Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade. <br><br> He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters. <br><br> His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies. <br><br> With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments. <br><br> He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape. <br><br> Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies. <br><br> Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.
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