Gold, silver trade higher amid weaker dollar, geopolitical uncertainty
New Delhi, June 4
Gold and silver traded higher in morning trade on Thursday, supported by a weaker dollar and geopolitical uncertainty in West Asia, as investors continued to track developments surrounding a possible diplomatic breakthrough between the US and Iran.
On the Multi Commodity Exchange (MCX), gold futures for August delivery were trading 0.35 per cent or Rs 533 higher at Rs 1,59,052 per 10 grams as of 11:28 am.
The yellow metal rose as much as 0.61 per cent or Rs 981 to touch an intraday high of Rs 1,59,500. It also hit an intraday low of Rs 1,58,701, up 0.11 per cent or Rs 182 from the previous close.
On the other hand, silver futures for July delivery rose up to 0.51 per cent or Rs 1,366 to touch an intraday high of Rs 2,64,324 per kg.
However, the white metal was trading at Rs 2,62,317, down Rs 641 or 0.24 per cent during the session. It recorded an intraday low of Rs 2,62,081, down 0.33 per cent or Rs 877.
Earlier in the day, gold and silver opened on the MCX at Rs 1,59,366 per 10 grams and Rs 2,63,146 per kg, respectively.
Analysts said safe-haven demand and geopolitical uncertainty continue to support precious metals, although a sustained breakout above key resistance levels would be required to strengthen the bullish outlook.
They see resistance for MCX gold around Rs 1,57,300-1,57,400, while silver faces resistance near Rs 2,66,000-2,67,000.
Recent military developments kept investor sentiment cautious after the US military said Iranian missile attacks targeting Bahrain, Kuwait and other regional locations were either intercepted or failed.
Meanwhile, crude oil prices declined over 1 per cent, with international benchmark Brent crude trading at $96.50 per barrel. Similarly, US West Texas Intermediate (WTI) crude was trading at $94.76 per barrel.
— IANS
Reader Comments
Geopolitical tensions in West Asia always drive up gold prices. But I feel the real reason is dollar weakness - if US keeps printing money, everything becomes expensive. Silver also has industrial demand, so that's a good hedge. Still, not a good time for new investors to jump in blindly.
Interesting to see MCX gold above Rs 1,59,000. As an NRI, I track these markets closely. The US-Iran situation is clearly supporting safe havens. But I'm surprised silver is actually down today - it usually follows gold. Maybe the industrial slowdown is hitting demand? 🤔
Gold prices are insane! My parents bought gold at Rs 31,000 per 10 grams a decade ago, now it's Rs 1.59 lakh! 😱 It's good for those who have it, but for young couples planning weddings, it's heartbreaking. We need more investment options beyond gold.
One small criticism - the analysis says resistance at Rs 1,57,300 but gold is already above that! These technical levels seem outdated. Still, with West Asia tensions and falling crude, volatile times ahead. Better to hold existing positions than add new ones.
In US, gold ETFs are popular but in India, we still prefer physical gold. The MCX futures are interesting but too risky for retail. Let's hope the Iran situation de-escalates soon - war never benefits anyone, just makes gold and oil traders richer. 🙏
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