Gold prices declined in the domestic futures market on Tuesday morning, weighed down by easing geopolitical tensions and subdued demand in the spot market. The June 5 contract on the Multi Commodity Exchange (MCX) was trading 0.35% lower at ₹92,975 per 10 grams as of 9:15 AM.
The dip comes amid rising optimism over a potential ceasefire between Russia and Ukraine. According to media reports, U.S. President Donald Trump held a two-hour phone conversation with Russian President Vladimir Putin on Monday, aimed at accelerating peace talks. Putin reportedly described the discussion as “very frank” and “useful,” stressing the importance of identifying a viable path toward ending the conflict.
The prospect of a resolution has reduced investor demand for safe-haven assets like gold. Additionally, a stable U.S. dollar—following a modest recovery from earlier losses—has made gold more expensive for holders of other currencies, further pressuring prices.
Volatility Persists Amid Mixed Global Signals
Gold has experienced heightened volatility in recent weeks, driven by a mix of softening geopolitical tensions, uncertainty surrounding U.S. Federal Reserve rate policy, and shifting sentiment over global trade developments.
Over the past week, MCX Gold has declined by approximately 1%, reflecting these mixed signals.
Expert Outlook: Buy on Dips
Despite the current weakness, industry experts remain optimistic about gold’s long-term potential.
“With growing concerns about the health of the U.S. economy, even positive developments in trade talks may not be enough to trigger sustained declines in gold. Investors should consider using price dips as strategic entry points,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures.
Manoj Kumar Jain, a commodity strategist at Prithvifinmart, echoed a similar sentiment, particularly for silver.
“We suggest buying silver on dips around ₹94,800 with a stop loss at ₹94,150, targeting ₹96,100,” Jain advised.
For gold, Jain highlighted key levels to watch:
Support: $3,210–$3,184 per troy ounce
Resistance: $3,250–$3,264 per troy ounce
In the domestic market:
MCX Gold Support: ₹92,750–₹92,200
Resistance: ₹93,850–₹94,400
For silver:
Support: ₹94,800–₹94,000
Resistance: ₹96,000–₹96,650
Looking Ahead
With no major economic data expected from the U.S. on Tuesday, investors will keep a close eye on further geopolitical developments and upcoming statements from Federal Reserve officials. These factors are likely to drive short-term fluctuations in bullion prices and inform investor positioning for the rest of the week.
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