Gold rate rises on MCX as US-Iran talks end without a deal; experts highlight key levels to watch

Gold price today: Gold rate climbed on the MCX in early trade on Friday, February 27, supported by healthy spot market demand amid persisting geopolitical uncertainties and the dollar's weakness.

MCX gold April contracts rose by nearly ₹500, or 0.30%, to ₹1,60,177 per 10 grams, while MCX silver March contracts climbed by more than ₹7,100, or nearly 3%, to ₹2,66,800 per kg in early deals.

In the previous session, MCX gold's April futures on MCX closed at ₹1,59,709 per 10 grams, falling nearly 1%, while silver's March futures ended at ₹2,59,669 per kilogram, losing over 3%.

The US-Iran talks ended without a deal on Thursday, even as mediator Oman said both sides made progress.

Foreign Minister of Oman Sayyid Badr Albusaidi wrote on the social media platform X that both countries will resume their talks soon after consultation in the respective capitals, and technical-level discussions will take place next week in Vienna.

While talks are on, the tensions between the two countries remain elevated. US Secretary of State Marco Rubio on Wednesday said that Iran continues to pose a “very grave threat” to the U.S. This is creating geopolitical uncertainty, supporting safe-haven demand for precious metals.

Meanwhile, the US dollar index, after rising to 97.82, cooled amid some selling by importers and dropped to 97.69, down from its previous close of 97.79. This also seems to have facilitated some buying interest in the yellow metal.

Meanwhile, US weekly jobless claims increased slightly by 4,000 to 2,12,000 for the week ended February 21, reflecting a stable labour market and weighing on expectations of a rate cut by the US Federal Reserve in the near future.

According to CME's FedWatch Tool, quoted by news agency Reuters, market participants expect three 25-basis-point rate cuts from the Federal Reserve this year.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile today.

Jain suggests buying gold on dips around ₹1,59,100 and ₹1,58,000, with a stop loss below ₹1,56,500, targeting ₹1,60,600 and ₹1,61,800; and buying silver around ₹2,58,000 and ₹2,53,000, with a stop loss below ₹2,48,800, targeting ₹2,62,000 and ₹2,68,000.

According to Jain, gold has support at $5,164 and $5,122, while resistance is at $5,222 and $5,265 per troy ounce, and silver has support at $84.40 and $80.80, while resistance is at $90.00 and $92.40 per troy ounce in today’s session.

On the MCX, Jain said gold has support at ₹1,58,200 and ₹1,56,500 and resistance at ₹1,61000 and ₹1,62,500, while silver has support at ₹2,55,000 and ₹2,48,800 and resistance at ₹2,64,600 and ₹2,71,000.

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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.