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Gold price today: Gold rate saw an uptick on the MCX on Thursday (7 May) morning as investors awaited further clarity on the potential US-Iran peace deal, while stronger US private payrolls data further dimmed the prospects of US Fed rate cuts in the near future, limiting the gains for the yellow metal.
MCX gold June futures were up 0.39% at ₹1,52,730 per 10 grams around 9:05 am, while MCX silver July futures were up more than 1% at ₹2,55,929 per kg at that time.
The big relief for gold traders is the prospects of a peace deal between the US and Iran, which can lead to the reopening of the Strait of Hormuz, a critical waterway for global oil trade.
Crude Oil benchmark Brent Crude crashed 8% to trade near the $102 per barrel on Wednesday. Lower oil prices will alleviate inflation fears, increasing the prospects of a rate reduction and triggering a fresh buying interest in gold.
"Gold prices rose as hopes for a US-Iran agreement triggered a sharp decline in oil prices and helped ease inflation worries. MCX gold June futures may advance to ₹1,52,800 per 10 grams as momentum has turned positive in the global market," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted.
However, at this juncture, markets are factoring out a rate reduction this year as the US jobs market remains in good shape and concerns over sticky inflation persist.
The ADP's national employment report on Wednesday showed that US private payrolls rose by more than expected in April. The monthly U.S. employment report is due on Friday and will provide a clearer picture of the U.S. job market amid geopolitical uncertainties.
On the geopolitical front, according to media reports, Washington had sent a one-page memorandum of understanding to Tehran through Pakistani mediators to settle the conflict and for the gradual reopening of the Strait of Hormuz.
Reuters reported that Iran said on Wednesday it is reviewing a US peace proposal. The report quoted sources saying that the proposal would officially end the war, but key issues remain unresolved — including the US demand that Iran stop its nuclear program and reopen the Strait of Hormuz.
Following the fall in crude oil prices, the US dollar also eased, making bullion cheaper for buyers in overseas currencies.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,634 and $4,580 while resistance is at $4,740 and $4,800 per troy ounce. Silver has support at $75.50 and $72.40, while resistance is at $80 and 82.40 per troy ounce in today’s session.
"MCX gold has support at ₹1,51,500 and ₹1,50,700 and resistance at ₹1,53,150 and ₹1,54,200, while silver has support at ₹2,49,100 and ₹2,45,500 and resistance at ₹2,58,000 and ₹2,61,000," said Jain.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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