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As concerns eased over the US-China trade conflict, investors were seen booking profits which dramatically drove down gold prices on Friday, April 25, gold prices settled at 0.96%, while hitting a session low of 94,950. Following a jump of over 1% instore of June 5 MCX Gold contract which fell sharply by more than 1% during intraday trading. As of 1:55 PM, futures gold was trading at 94,991 per 10 grams.
Gold’s all-time high screaming at 99,358 per 10 grams set on april 22, saw a significant sharp correction. The precious mettal peeped down from 4,400 in 3 days.
Globally:
The international market gold followed the domestically set trend observed, with China announcing lowering the import tariffs on american products and high global expectations of lowering trade tension surging. Trade relations are looking good as China is preliminarily looking a reactive approach with restricting certain US goods.
The gold weakness is likely attributed to the raising US dollar which surged 0.3% against currency. Gold becomes more advance for foreign buyers due to strengthening the dollar, hence losing its appeal.
Concerns about the gold market, including increased trade wars, weakening dollar, central bank purchases, and major inflows into gold ETFs during stocks volatility, have contributed to an increase in gold prices worldwide. From spot gold's domestic price around 76,000 at the end of 2024, gold has increased by almost 20,000 or 26% in the current year.
Experts have recommended and given their takes: Remaining price volatility aside, gold, according to analysts, maintains a cautiously optimistic view on mid-term returns. Trivedi Jateen, Vice President Equity Research Commodities and Currency at LKP Securities commented, “Given the continued prevailing uncertainty and conflict primarily triggered from tariffs, gold prices in the near to mid-term are expected to be volatile. Trader short term outlook expects price movement in 94,000--97,000 range on MCX.
Trader Jain focused on gold long positions and silver shorts near the 97000 mark with target to a 98200 and losing position at 96400. He placed primary support for gold at 95250-94400 and resistance at 96600-97280.
Supervising the commodity unit, Kalantri Rahul set gold immediate support horizontal at 95450-95080 and resistance at 96650-97090. He highlighted for silver a support of 96680-95750 and resistance of 98450-99250.
