Gold Rate Today: Gold prices in India could fall further in near term. Check price of yellow metal in Delhi, Ahmedabad, and other Indian cities

Gold gained on Monday helped by softening in the Dollar Index (DXY). The prices of bullion are expected to move south in the near term as downturns are likely to keep the US economy on the edge, strengthening greenback. Investors or traders with a short-term view on gold may look to book profits.

Movement in the dollar is inversely proportional to the gold price movement.

On Monday, June gold futures were trading at Rs 59,537 per 10 gm on the MCX at 1:20 pm and were up by Rs 184 or 0.31% from Friday’s closing price. Meanwhile, July Silver futures were trading at Rs 71,484 per kg, higher by Rs 255 or 0.36% around this time.


While a deal on the debt ceiling between the Democrats and Republicans has averted a potential crisis for now, the event spanning over this month has kept gold on the edge. Fears of default loomed over the world’s largest economy as the dollar maintained its upward movement, denting prospects of this precious metal. The DXY has gained nearly 2% over the past one month and is now above the 104-mark against a basket of six major currencies.

Gold futures on the MCX have declined 0.96% or Rs 573 per 10 gram in May, said Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities,. They were up by 8% or Rs 4,400 on the year-to-date basis as on Friday, May 26, on the closing price basis, he said. Meanwhile, silver futures have lost nearly Rs 2,864 or 3.86% in value terms in May while gaining by 2.77% or Rs 1,921 on the YTD basis, Gupta added.

The mounting risk of a US government default strengthened the US dollar as the greenback reached two-month highs, Prathamesh Mallya, Deputy Vice President (Research), Non-agro Commodities & Currency at Angel One said. This has curtailed some safe-haven flows into bullion, he said, adding that the prices of bullion are likely to remain under pressure, going ahead.

Street is looking for more clarity on the US debt ceiling negotiations, he said.

Saumil Gandhi, Senior Analyst (Commodities) at HDFC securities, expects gold prices to consolidate in a lower range with a negative bias. MCX Gold June futures have support at Rs 59,240 - Rs 59,080 per 10 gm and resistances at Rs 59,750 - 60,065 per 10 gm.

Comex spot gold is having support at $1,933 - $1,923 per ounce and resistance at $1,980/$1,995 per ounce for the day, Gandhi said.

The price of physical gold in Delhi is around Rs 60,800 per 10 gm while that of silver is Rs 73,000 per kg, Gupta of IIFL Securities said. In Ahmedabad, a 10 gm gold is available around Rs 60,300 while 1 kg of silver is priced at Rs 73,100, he added.

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Intraday trading strategy by Anuj Gupta

– Sell MCX June Gold futures at Rs 59,600 with a stop loss of Rs 60,050 and price target of Rs 59,000

– Buy MCX July Silver futures at Rs 70,500 with a stop loss of Rs 70,000 and price target of Rs 72,000

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)