Gold and Silver Prices Experience a Decline

Today, the gold and silver markets witnessed a noticeable dip in prices, attributed to profit-taking activities as the dollar index showed signs of strengthening. At the MCX, Gold June futures started trading at Rs 96,020 per 10 grams, marking a decrease of 0.15% or Rs 148. Similarly, Silver July futures opened lower at Rs 96,136 per kg, down by Rs 376 or 0.39%.

Market Reactions and Analyst Insights

"The recent rebound in the dollar index, coupled with the US-UK trade deal agreement, has led to profit-taking in gold and silver," explained Rahul Kalantri, VP Commodities at Mehta Equities. He noted that gold prices have fallen nearly 4% over the past two days to $3,311, breaking key support levels and prompting technical selling.

Global Factors Influencing Prices

The US Dollar Index's rise by 0.85% to 100.71 has made gold more expensive for holders of other currencies. Additionally, the Federal Reserve's decision to maintain steady rates, alongside a cautious stance on future rate cuts by Chairman Powell, has led to higher treasury yields.

Support and Resistance Levels

Kalantri highlighted that MCX gold finds support at Rs 95,550-94,980, with resistance at Rs 96,650-97,040. For silver, support levels are at Rs 95,380-94,550, and resistance at Rs 97,250-97,950.