Gold prices opened higher on Tuesday after a muted performance in the previous session, continuing their broader uptrend. June gold futures on MCX started the day with a gain of ₹113 or 0.12%, trading at ₹96,050 per 10 grams, reflecting a sharp ₹5,160 increase from recent lows of ₹90,890 seen on May 15.
Meanwhile, silver July futures opened almost flat at ₹98,045 per kg, up ₹42 or 0.04%.
Precious Metals Rebound Despite International Pressure
On Monday, both gold and silver closed in the green in the Indian market, even as global markets showed mixed performance:
Gold June futures closed down 0.50% at ₹95,937/10g
Silver July futures slipped 0.05% to ₹98,003/kg
The minor pullback followed strong gains from the prior week, partially retraced after U.S. President Donald Trump delayed imposing tariffs on the European Union, temporarily boosting risk appetite.
Market activity was relatively subdued due to the Memorial Day holiday in the U.S., leading to lower trading volumes and some profit booking.
Dollar Weakness and Geopolitical Risks Fuel Bullion Demand
The U.S. Dollar Index (DXY) declined further, dipping below the 99 level to settle around 98.86, down 0.26%, marking a one-month low. The sustained weakness in the greenback, coupled with ongoing geopolitical tensions, continues to support safe-haven buying in the bullion market.
“Weakness in the dollar index, geopolitical tensions, and global uncertainty is supporting safe-haven buying for precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research (via ET).
Jain cautioned that volatility in the dollar index, bond markets, and geopolitical developments would likely drive price swings in the days ahead.
Trading Strategy: Buy on Dips
Jain recommends buying gold and silver on price dips and provided the following levels for the MCX market:
Gold (June Futures)
Support: ₹95,400 – ₹94,950
Resistance: ₹96,650 – ₹97,200
Expected range: ₹94,800 – ₹96,650
Silver (July Futures)
Support: ₹97,200 – ₹96,650
Resistance: ₹98,850 – ₹99,500
Expected range: ₹96,650 – ₹99,500
He also noted that gold may hold above $3,200/oz and silver above $31.80/oz on the international market on a weekly closing basis, suggesting technical support remains intact for both metals.
Conclusion
Despite recent fluctuations tied to global trade policy shifts and investor risk sentiment, the bullish undertone for gold and silver remains supported by structural factors including:
A weaker U.S. dollar
Central bank buying
Geopolitical uncertainty
Anticipation of Fed rate cuts later in 2025
As volatility persists, traders are advised to monitor global cues closely and consider strategic accumulation during market dips.
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