The Indian rupee opened 12 paise stronger at 85.44 against the US dollar on Monday, supported by favorable global cues and market optimism. The rupee had closed at 85.52 per dollar on Friday.
At the same time, gold prices surged nearly 1 percent in the morning session on the domestic futures market, driven by a weakening US dollar and renewed concerns over the possible return of Donald Trump-era trade tariffs.
On the Multi Commodity Exchange (MCX), the Gold June 5 contract was trading 0.95 percent higher at ₹93,317 per 10 grams. The US dollar index dropped by about 0.3 percent, making gold more affordable in other currencies and boosting global demand.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that gold has support at \$3,195–$3,175 and resistance at $3,245–$3,260. For silver, the support levels are $32.10–$31.80, while resistance lies at $32.65–$32.85.
“Gold prices climbed above $3,220 per ounce on Monday, rebounding from last week’s steepest decline in six months,” Kalantri said. “The recovery was fueled by safe-haven demand following Moody’s downgrade of the US sovereign credit rating, citing fiscal imbalances and rising debt costs.”
Despite temporary relief from the US-China tariff truce, weak US economic indicators and subdued inflation have led investors to anticipate additional interest rate cuts by the Federal Reserve. This sentiment has further bolstered bullion prices.
“In Indian rupee terms, gold has support at ₹91,850–₹91,480 and resistance at ₹92,850–₹93,490,” Kalantri added. “Silver is supported at ₹94,480–₹94,850 per kg and faces resistance at ₹95,950–₹96,650.”
Gold prices have remained rangebound over the past two sessions, largely due to the lack of fresh triggers. The easing of geopolitical tensions between India and Pakistan and the temporary US-China truce have contributed to this stability.
However, domestic demand ahead of India’s upcoming wedding season is expected to provide strong support, keeping prices elevated, said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA).
—IANS