Gold and silver prices declined on Monday as easing US-China trade tensions and a stronger US dollar reduced investor demand for safe-haven assets.
Gold prices on the Multi Commodity Exchange of India (MCX) opened lower, mirroring losses in global markets. The fall came after signs of progress in US–China trade talks, which boosted risk appetite among investors.
Domestic Market Update
At the opening bell, MCX gold December futures dropped 0.77% to Rs 1,22,500 per 10 grams, compared to the previous close of Rs 1,23,451.
MCX silver December futures opened 3.09% lower at Rs 1,42,910 per kg, down from Rs 1,47,470 in the previous session.
By 9:05 AM, gold was trading Rs 1,088 (0.88%) lower at Rs 1,22,363 per 10 grams, while silver was down Rs 1,130 (0.77%) at Rs 1,46,340 per kg.
Global Market Trends
In the international market, spot gold fell 0.7% to $4,082.77 per ounce, while US gold futures (December delivery) declined 1% to $4,095.80.
The US dollar strengthened to a two-week high against the yen, making gold costlier for holders of other currencies.
According to reports, top US and Chinese officials agreed on a draft framework for a potential trade deal to be discussed by US President Donald Trump and Chinese President Xi Jinping later this week. This progress eased market uncertainty, leading to a decline in gold prices.
Expert Views
“Gold prices fell as optimism around US–China trade talks lowered safe-haven demand. Markets are also awaiting major central bank decisions this week,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi expects MCX gold December futures to find short-term support near Rs 1,22,600 per 10 grams.
Rahul Kalantri, VP–Commodities at Mehta Equities, added:
“Gold has support at $4,050–$4,005 and resistance at $4,145–$4,165. On MCX, gold support is seen at Rs 1,22,470–Rs 1,21,780, with resistance at Rs 1,23,950–Rs 1,24,800. Silver support lies at Rs 1,46,250–Rs 1,45,150, and resistance at Rs 1,47,950–Rs 1,48,780.”
Outlook
Analysts expect gold prices to stay under pressure in the near term as traders await key central bank meetings.
The US Federal Reserve is widely expected to cut interest rates by 25 basis points after softer US inflation data. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BoJ) are likely to keep their rates unchanged.
