On Friday, June gold futures settled at Rs 72,806 per 10 grams, while May silver futures settled at Rs 83,507 per kilogram. Precious metals retreated after a series of highs in previous weeks.
Taking a cue from international markets, gold prices fell following the rise in the dollar, which held above the 106 mark. At 6:30 p.m. IST, the dollar index was trading at 106 .24, up 0.08 points or 0.08%.
“The price of gold has declined slightly due to easing geopolitical tensions in the Middle East, which has diminished its appeal as a safe investment. Despite ongoing conflicts between Israel and Iran, the situation appears to be stabilizing, with both sides downplaying the severity of recent strikes. Investors are now looking to upcoming U.S. economic data, particularly the Personal Consumption Expenditures Price Index, which could influence the Federal Reserve’s interest rate decisions,” says Neha Qureshi, technical analyst and senior derivatives at Anand Rathi Commodities & Currencies.
Higher interest rates generally make gold less attractive since it does not earn interest. Despite these factors, Neha adds, the price of gold remains significantly higher this year due to strong demand from central banks and buyers in Asia, particularly China.
In U.S. markets, gold slipped $59, or 2.4 percent, to $2,354.80 per troy ounce. On the daily chart, according to Qureshi, June gold futures formed a bearish engulfing candlestick pattern, unable to hold above 73,300, which is a strong resistance zone suggesting a potential slowdown . The Relative Strength Index (RSI) has entered overbought territory and is showing negative divergences, supporting the bearish outlook. The main resistance levels to watch are at 73,300 and 73,958, while support levels are at 72,300 and 72,020. (Disclaimer: Recommendations, suggestions, views and opinions given by experts are the their. These do not represent the views of Economic Times.