Gold prices drop today as US-Iran tension ease
Day after the prices of gold hit the highest in nearly seven years at $1,582.59 on Tuesday, it dropped in India amid a decline in global markets and a rebound in rupee against the US dollar. Gold price on Tuesday fell 0.2% to $1,562.81 per ounce. Earlier on Monday, Gold prices had surged ₹1,200 per 10 gram over the previous two sessions.
On MCX, gold futures rates fell 0.53% or ₹214 to ₹40,258 per 10 gram today. Apart from gold, silver rates also saw a decline with futures on MCX falling 0.6% to ₹47,266 per kg.
Apart from US-China trade talks, other uncertainties like Brexit, Middle East and Hong Kong tensions are keenly watched by gold traders, said Navneet Damani, head of research for commodities and currency at Motilal Oswal Financial Services.
"Further updates on the US-Iran tensions will also be in focus, giving further direction to the precious metal pack. We continue to maintain our positive bias on gold, targeting the level ₹42,700 followed by ₹44,300 and maintain support at ₹38,600. On Comex, major resistance is at $1,630 with support the support of $1,520 followed $1,435 on Comex," he added.
Amid the Middleast tensions, International gold prices at COMEX climbed as much as 2.3 per cent to USD 1,588.13 an ounce, the highest level since April 2013, and traded at USD 1,575 an ounce. Along with the other Asian currencies, the rupee traded with a loss of 25 paise amid higher crude oil prices.
With the ease in US-Iran tension, Asian shares rebounded today after there was no further escalation in Middle East tensions.
Earlier on Monday, the domestic market witnessed intense sell-off in line with global stocks after US President Donald Trump warned Iran of major retaliation if Tehran carries out any attack against America to avenge the killing of top military commander Qasem Soleimani.
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