Gold prices on the Multi Commodity Exchange of India (MCX) opened lower on Wednesday, falling below ₹97,000 per 10 grams, amid rising geopolitical tensions between India and Pakistan and ahead of the US Federal Reserve’s monetary policy meeting later in the day.
At the opening, MCX gold was priced at ₹96,900 per 10 grams, down from the previous close of ₹97,491. By 9:05 AM, gold prices had dropped further by ₹841, or 0.86%, to ₹96,650 per 10 grams. The metal had seen a strong rally of over 3% in the previous session.
Silver prices also saw a decline, opening lower and trading down by ₹251, or 0.26%, at ₹96,450 per kg.
The dip in gold prices follows a rise in geopolitical tensions after the Indian Armed Forces conducted ‘Operation Sindoor’, a series of precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). The operation targeted nine key terror sites, escalating the standoff between the neighboring nations.
Internationally, gold prices also retreated as optimism surrounding potential US-China trade talks dampened the demand for safe-haven assets. Spot gold prices fell 1.2% to $3,388.67 per ounce, while US gold futures dropped by 0.7% to $3,397.70.
“We expect a sharp decline in gold prices during the day as international prices have fallen, with early morning drops following news that US officials expressed optimism for the resumption of trade talks in Switzerland. However, the trade talk announcement came just hours after US President Donald Trump said he was not in a rush to finalize trade deals,” commented Jigar Trivedi, Senior Research Analyst at Reliance Securities.
US Fed Policy Awaited
Traders are also closely watching the US Federal Reserve’s monetary policy meeting. Investors are awaiting insights from Fed Chair Jerome Powell on inflation and the possibility of interest rate cuts. Trivedi expects the Fed to keep interest rates unchanged after its two-day meeting, with no immediate changes expected amidst ongoing uncertainties over the economy and President Trump’s tariffs.
“The outlook for today remains bearish, and MCX Gold July contracts may fall towards ₹96,500 per 10 grams,” Trivedi noted.
Analysts have outlined the following support and resistance levels for gold and silver prices. According to Rahul Kalantri, VP Commodities at Mehta Equities, gold has support at $3,335 – $3,310 and resistance at $3,400 – $3,422. Silver’s support is at $32.65 – $32.40, with resistance at $33.30 – $33.55.
For MCX gold, support levels are seen at ₹96,650 – ₹95,980, while resistance is at ₹97,950 – ₹98,390. Silver has support at ₹95,580 – ₹94,750, with resistance at ₹97,350 – ₹97,950, Kalantri added.
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