Gold rate rises on MCX amid dollar’s weakness; US-Iran talks remain in focus
Gold rate today: Gold prices rose on the MCX on Thursday, April 16, morning amid the US dollar’s weakness, while investors remained focused on emerging signs in the US–Iran situation that will impact risk appetite.
MCX gold June futures rose abut 0.50% to ₹1,54,668 per 10 grams, while MCX silver May futures jumped by more than 1% to ₹2,55,735 per kg in early deals.
International gold prices, meanwhile, eased after hitting a one-month high amid speculation about the next round of US-Iran talks and the impact of geopolitical developments on the US interest rate trajectory.
The dollar index eased by 0.20%, while Brent Crude prices were largely flat, trading near the $95 per barrel mark.
Gold and silver prices are witnessing high volatility as investor risk appetite appears to be returning amid emerging signs that the US and Iran may find a way to end their conflict in the coming few days. US equity markets are near their record highs, while the Indian stock market sentiment has also improved.
US President Donald Trump, according to media reports, has signalled that the West Asian war is close to being over and has said that a second round of negotiations with Iran could take place in Pakistan within the next two days.
A final end to the US-Iran war can drive crude oil prices further lower, easing the concerns over inflation and growth slowdown. If both countries fail to reach an agreement, a prolonged period of high oil prices could stoke inflation and dim the prospects of US Fed rate cuts this year.
Experts believe gold and silver prices may remain volatile in the near term. Some of them, however, recommend buying the dips.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, crude oil prices and possible second round of peace talks between the US and Iran. We maintain our buying on dips strategy for both precious metals for the price target of ₹1,57,000 for gold and ₹2,61,000 for silver,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
(This is a developing story. Please check back for fresh updates.)
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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.
