The Indian rupee opened 12 paise stronger at 85.44 against the US dollar on Monday, bolstered by global economic cues and market sentiment. This follows Friday’s closing rate of 85.52 per dollar.
Simultaneously, gold prices witnessed an upward trend in early domestic futures trading. On the Multi Commodity Exchange (MCX), the June 5 gold contract was up 0.95% at ₹93,317 per 10 grams. This surge was driven by a weakening US dollar and renewed fears over a possible return of Donald Trump-era trade tariffs. The dollar index dropped nearly 0.3%, making gold more affordable in other currencies and increasing demand.
Rahul Kalantri, Vice President of commodities at Mehta Equities, noted gold is currently supported at $3,195–3,175 with resistance at $3,245–3,260. Silver, he said, has support at $32.10–31.80 and resistance at $32.65–32.85.
“Gold prices crossed $3,220 per ounce on Monday, bouncing back after last week’s steepest decline in six months,” Kalantri said, attributing the recovery to renewed safe-haven demand following Moody’s downgrade of the US sovereign credit rating due to fiscal imbalances and rising debt costs.
Despite the temporary tariff truce between the US and China, weak American economic indicators and sluggish inflation have led markets to anticipate further interest rate cuts by the Federal Reserve, lending additional support to precious metals.
In Indian markets, Kalantri highlighted that gold has support at ₹91,850–91,480 and resistance at ₹92,850–93,490. Silver is supported at ₹94,480–94,850 per kg, with resistance at ₹95,950–96,650.
Gold prices remained largely rangebound over the past two sessions, with few fresh catalysts as geopolitical tensions between India and Pakistan eased and the US-China tariff situation stabilized.
However, Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), noted that domestic demand ahead of the upcoming wedding season in India is expected to keep prices elevated in the near term.