Gold price today: Rates rise on dollar's weakness; experts highlight key levels for MCX Gold

Gold price today: Gold rates increased in the domestic futures market Wednesday morning, supported by weakness in the US dollar and concerns over fiscal uncertainty in the world's largest economy. MCX Gold June 5 contracts traded 0.66 per cent higher at ₹95470 per 10 grams around 9:15 AM.

The US dollar fell below the 100 level, making gold cheaper in other currencies. Since gold is priced in dollars, weakness in the US currency makes bullion cheaper in other currencies and enhances its demand.

Rising concerns over the US economy are weighing on the dollar and supporting gold prices.

The tax cut bill in the US has raised concerns that it will widen the US budget deficit faster than expected. Meanwhile, Moody’s downgraded the US credit rating last Friday.

Gold prices have seen some recovery after profit booking in the recent few days. In the previous session, MCX Gold June futures jumped 1.65 per cent.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold and silver extended their gains on more safe-haven buying due to Moody’s downgrades of US ratings amid higher Federal debts.

Jain pointed out that the dollar index extended its fall, and the global equity markets plunged after US rating downgrades, supporting gold and silver prices. On Tuesday, the Chinese central bank cut its one-year and five-year loan rates by 10 basis points, and the Australian central bank also cut interest rates by 25 basis points. This also influenced precious metals.

Experts believe gold prices may consolidate in the near term.

"Demand remains strong, with China importing its highest volume of gold in nearly a year last month, despite record-high prices. Continued buying from global central banks and steady demand during India’s wedding season are expected to keep downside capped, even though major catalysts for a sharp up move are currently absent. As a result, gold prices are likely to consolidate with bouts of volatility until a clear directional trigger emerges," said Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures.

Experts highlight key levels for MCX Gold, Silver

Jain said gold has support at $3,255-3,230, while resistance at $3,310-3,334 per troy ounce and silver has support at $32.84-32.55, while resistance is at $33.45-33.80 per troy ounce in today’s session.

MCX Gold has support at ₹94,200-93,650 and resistance at ₹95,360-95,800, while silver has support at ₹96,650-96,000 and resistance at ₹98,000-98,850.

"We suggest buying silver around ₹96,800 with a stop loss of ₹96,150 for the target of ₹98,250," said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,270-3,250 and resistance at $3,320-3,340. Silver has support at $32.70-32.55 and resistance at $33.28-33.50.

In INR, gold has support at ₹94,550-94,180 while resistance is at ₹95,450-95,840. Silver has support at ₹96,680-96,050 while resistance is at ₹97,950-98,750, said Kalantri.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.