New Delhi– The Indian rupee opened 12 paise stronger at 85.44 against the U.S. dollar on Monday, supported by favorable global cues and currency market sentiment. The rupee had closed at 85.52 per dollar on Friday.
At the same time, gold prices saw a sharp uptick, gaining nearly 1% in early trade on the domestic futures market. The surge was driven by a weakening dollar and renewed concerns over the potential reintroduction of trade tariffs reminiscent of the Trump administration.
On the Multi Commodity Exchange (MCX), gold futures for June 5 delivery traded 0.95% higher at ₹93,317 per 10 grams during the morning session. The U.S. dollar index slipped nearly 0.3%, making gold more attractive to holders of other currencies and boosting demand.
“Gold prices climbed above $3,220 per ounce on Monday, rebounding from last week’s steepest weekly decline in six months,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities. “The recovery is largely due to renewed safe-haven demand following Moody’s downgrade of the U.S. sovereign credit rating, citing persistent fiscal imbalances and rising debt costs.”
Kalantri added that gold has technical support at $3,195–3,175 and resistance at $3,245–3,260. For silver, support lies at $32.10–31.80 and resistance at $32.65–32.85.
In the Indian market, he noted that gold has support at ₹91,850–91,480 and resistance at ₹92,850–93,490 per 10 grams. For silver, support is pegged at ₹94,480–94,850 and resistance at ₹95,950–96,650 per kilogram.
Despite optimism from a temporary truce in U.S.–China trade tensions, weak U.S. economic indicators and muted inflation have led markets to anticipate further interest rate cuts by the Federal Reserve, lending additional support to bullion prices.
Meanwhile, Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), said that while gold prices remained largely range-bound over the past two sessions, domestic demand is expected to pick up ahead of India’s wedding season.
“With geopolitical tensions easing and a lack of fresh global triggers, gold is consolidating. However, upcoming wedding-related purchases in India will likely keep prices elevated and limit any downside,” Kamboj said. (Source: IANS)
