New Delhi— The Indian rupee opened 12 paise higher at 85.44 against the U.S. dollar on Monday, strengthening from Friday’s close of 85.52 amid global market reactions and economic developments.
Meanwhile, gold prices edged up nearly 1% in early trade on the Multi Commodity Exchange (MCX), supported by a weaker dollar and renewed concerns over the possible return of Trump-era trade tariffs.
The MCX Gold June 5 contract rose 0.95% to ₹93,317 per 10 grams. A weaker dollar index—down by nearly 0.3%—boosted gold’s appeal, as a softer greenback makes the metal more affordable for holders of other currencies.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that gold found support at $3,195–3,175 and faces resistance at $3,245–3,260. For silver, key support levels were seen at $32.10–31.80, with resistance at $32.65–32.85.
“Gold climbed above $3,220 per ounce on Monday, bouncing back from last week’s steepest decline in six months,” said Kalantri. “The rebound was fueled by safe-haven demand following Moody’s downgrade of the U.S. credit rating, citing rising debt and fiscal concerns.”
He added that soft U.S. economic data and muted inflation expectations have increased the likelihood of further interest rate cuts by the Federal Reserve, lending additional support to gold.
In rupee terms, gold has support at ₹91,850–91,480 and resistance at ₹92,850–93,490. Silver support lies at ₹94,480–94,850 per kg, with resistance at ₹95,950–96,650.
While prices have remained rangebound in recent sessions—amid easing geopolitical tensions and a temporary U.S.–China tariff truce—domestic demand ahead of India’s wedding season is expected to keep gold prices elevated.
“Seasonal demand will likely cap the downside and maintain price strength,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA). (Source: IANS)
