Gold prices climbed on the Multi Commodity Exchange (MCX) on Friday (8 May) morning, with MCX gold June futures rising 0.42% to ₹1,52,900 per 10 grams as reported by Mint. The precious metal's upward movement was supported by healthy spot demand and positive global market cues, though gains were limited by elevated US dollar conditions and a rebound in crude oil prices. According to Mint, MCX gold June futures may appreciate to ₹1,53,000 per 10 grams as the undertone is positive in international markets too. The precious metal's performance reflects broader market dynamics where gold prices have been under pressure since the US-Iran war started on 28 February this year, with domestic spot gold prices declining 5% since then due to higher oil prices.
Silver futures also participated in the rally, with MCX silver July futures gaining 1% to ₹2,61,153 per kg around 9:10 am, according to Mint reports. The precious metal's performance mirrored gold's upward trajectory, benefiting from the same supportive market factors that drove gold higher during the trading session. Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today's session amid volatility in the dollar index, crude oil prices and ahead of the U.S. non-farm payroll data. He suggests buying silver on dips around ₹2,54,000 with a stop loss below ₹2,48,800 for the target of ₹2,60,000 and ₹2,63,500.
The precious metals rally was supported by healthy spot demand and positive global cues, as noted by Mint. However, gains were constrained by elevated US dollar conditions and a rebound in crude oil prices, which created headwinds for the precious metals complex. According to Mint, the dollar index climbed by 0.20% after crude oil benchmark Brent Crude jumped over 1% to reclaim the $100 per barrel mark. Fresh military exchanges in the Middle East drove oil prices higher, with the U.S. military intercepting Iranian attacks targeting three Navy ships in the Strait of Hormuz and carrying out strikes on Iranian military facilities. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, emphasized that focus now is on the monthly U.S. employment report, due later today, which will offer cues on how the US Federal Reserve will move forward with monetary policy this year.
Market experts have identified key technical levels for both gold and silver trading. Manoj Kumar Jain of Prithvifinmart Commodity Research provided specific support and resistance levels for international markets, with gold having support at $4664 and $4610, while resistance is at $4740 and $4800 per troy ounce. Silver has support at $78 and $75.50, while resistance is at $82.40 and $84.80 per troy ounce. On the MCX, gold has support at ₹1,51,500 and ₹1,50,800 and resistance at ₹1,53,150 and ₹1,54,000, while silver has support at ₹2,55,500 and ₹2,51,000 and resistance at ₹2,62,000 and ₹2,66,600. The elevated crude oil prices can drive up inflation, potentially dimming the prospects of interest rate cuts, which creates a mixed environment for precious metals trading.
