Gold prices on Multi Commodity Exchange (MCX) rose on Monday, amid safe-haven demand, as global equity markets crashed. Silver prices also jumped 2%.
On MCX, gold rate traded higher by ₹301, or 0.34% at ₹88,376.00, while silver prices rallied by ₹1,487, or 1.71% to ₹88,698 per kg.
In the international markets, gold rates hit their lowest levels in more than three weeks, as a wider market sell-off triggered by US President Donald Trump’s tariff measures impacted bullion traders, Reuters reported.
Spot gold fell 1.9% at $2,981.09 an ounce, its lowest level since March 13. Bullion hit a record high of $3,167.57 on April 3. US gold futures fell 1.3% to $2,997.40. Spot silver plunged 2.8% to $28.74 an ounce, marking its lowest level in nearly seven months.
Meanwhile, the dollar index, which measures the US currency against six rivals, was little changed at 102.81, having tumbled 1% last week.
Why are gold prices falling?
Gold and silver experienced extreme volatility last week, plunging sharply following the imposition of reciprocal trade tariffs by the United States on key trading partners. In retaliation, China levied a 34% tariff on US imports, escalating trade tensions.
Additionally, dovish commentary from the US Federal Reserve Chairman further weighed on market sentiment. A weaker-than-expected US non-farm payroll report for March added to the bearish momentum in precious metals.
Gold Price Outlook
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said that the elevated volatility across financial markets is expected to persist.
“Gold has support at $3,000 – 2,978 while resistance at $3,055 – 3,075. Silver has support at $29.48 – 29.20 while resistance is at $30.10 – 30.46. In INR gold has support at ₹87,760 – 87,350 while resistance at ₹88,610 – 89,190. Sliver has support at ₹86,600 – 85,650 while resistance at ₹89,500 – 90,950,” said Kalantri.
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