Gold price today: Gold rate crashed on the MCX on Friday (February 6) morning on profit booking amid weak global cues, dollar’s rise, and subdued spot market demand. MCX gold April futures dropped by nearly ₹2,700, or almost 2%, to ₹1,49,396 per 10 grams, while MCX silver March contracts crashed by ₹14,600, or 6%, to ₹2,29,187 per kg.
International gold prices also declined on a stronger dollar. U.S. gold futures for April delivery fell by almost 2% to $4,806.50 per troy ounce. On the weekly scale, gold is on track for its second consecutive weekly loss.
Gold and silver prices are witnessing profit booking amid easing geopolitical risks and the dollar’s rise against its peers. However, expectations of US Fed rate cuts remain a key positive for the yellow metal.
The US dollar index rose by about 0.20%, making greenback-backed gold expensive for buyers in other currencies.
Emerging signals that US President Donald Trump is looking for a diplomatic solution with Iran eased geopolitical concerns. Iran and the US will resume nuclear negotiations on Friday in Oman.
Meanwhile, the focus is also on the RBI MPC policy decision today. The central bank is expected to keep rates steady, given healthy growth and low inflation.
“Gold and silver prices crashed again after the U.S. and Iran agreed to talk on the nuclear deal in Oman on Friday. Heavy sell-off in the global equity and crypto markets is also pressurising other asset classes like precious and industrial metals,” Manoj Kumar Jain of Prithvifinmart Commodity Research, noted.
“The dollar index gained and also pushed gold and silver prices lower. Traders in Chinese markets also unwind long positions before going to the Lunar New Year holidays and hurt precious metal markets’ sentiments,” Jain highlighted.
According to Jain, gold has support at $4,770 and $4,640 while resistance is at $4,955 and $5,050 per troy ounce, and silver has support at $71.20 and $64, while resistance is at $84.40 and $88.80 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,50,500 and ₹1,47,700 and resistance is at ₹1,54,200 and ₹1,55,800. Silver has support at ₹2,25,000 and ₹2,12,000, and resistance is at ₹2,54,000 and ₹2,64,000.
Jain suggests staying away from the precious metals markets until stability returns in the markets.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold April futures to appreciate to ₹1,53,000 per 10 grams, whereas ₹1,50,000 per 10 grams is a good support for intraday today.
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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.