Daijiworld Media Network - New Delhi
New Delhi, May 19: The Indian rupee opened Monday trading 12 paise stronger at 85.44 against the US dollar, supported by global economic factors and market sentiment. The currency had closed at 85.52 per dollar on Friday.
Gold prices also saw a notable uptick in the domestic futures market, rising nearly 1 percent in the morning session amid a softer dollar and revived worries about trade tariffs reminiscent of the Trump administration.
MCX Gold’s June 5 contract surged 0.95 percent to trade at Rs 93,317 per 10 grams. Meanwhile, the US dollar index dropped about 0.3 percent, boosting gold’s appeal as a cheaper investment for holders of other currencies.
Rahul Kalantri, Vice President of commodities at Mehta Equities, highlighted that gold currently finds support in the $3,175 to $3,195 range, with resistance between $3,245 and $3,260. Silver’s support lies between $31.80 and $32.10, while resistance is estimated at $32.65 to $32.85.
“Gold rebounded above $3,220 per ounce on Monday after experiencing its sharpest drop in six months last week,” Kalantri explained. “This recovery was driven by increased safe-haven demand following Moody’s downgrade of the US sovereign credit rating due to fiscal imbalances and rising debt servicing costs.”
Despite a temporary easing of US-China trade tensions, weak economic data from the US and subdued inflation expectations have pushed markets to anticipate further interest rate cuts by the Federal Reserve, lending additional support to gold prices.
In Indian rupees, gold support levels are estimated between Rs 91,480 and Rs 91,850, with resistance ranging from Rs 92,850 to Rs 93,490. For silver, support is at Rs 94,480 to Rs 94,850 per kg, while resistance lies between Rs 95,950 and Rs 96,650, Kalantri added.
Gold prices have been relatively stable over recent sessions due to a lack of strong positive catalysts, as US-China relations temporarily improved and tensions between India and Pakistan eased.
However, Aksha Kamboj, vice president of the India Bullion and Jewellers Association (IBJA), noted that domestic demand ahead of India’s wedding season is likely to keep gold prices elevated and limit any significant price decline.