Geopolitical calm and a stronger US dollar push gold prices lower for a second session, with MCX gold trading below ₹92,000. Analysts advise caution and selective accumulation.
May 15, 2025: Gold prices continued to slide on Thursday, with MCX Gold June futures falling by 0.70% to ₹91,615 per 10 grams in early morning trade, extending losses from the previous session. On Wednesday, gold had already plunged 1.48%, closing at ₹92,265 per 10 grams.
The decline in domestic gold rates follows a broader global trend, triggered by a strengthening dollar and easing geopolitical tensions — particularly between India and Pakistan — as well as progress in US-China trade talks, which have dampened safe-haven demand.
Why Are Gold Prices Falling?
According to Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart, both gold and silver gave up recent gains due to reduced market fear:
“Easing safe-haven demand amid US-China trade progress and easing global tensions prompted risk-on sentiment, pushing investors away from bullion.”
Silver July futures also declined 1.34%, settling at ₹95,466 per kilogram.
Global Drivers Behind the Decline
- Stronger US Dollar: A rising greenback traditionally makes gold more expensive for foreign investors.
- Easing India-Pakistan Conflict: After the ceasefire, risk perception in South Asia has decreased.
- US-China Trade Optimism: Talks hinting at tariff reductions shifted investor focus from gold to equities.
Also Read: China Blasts US-UK Trade Pact, Labels Security Clauses ‘Poison Pills’ Targeting Beijing
Expert Strategy for MCX Gold Investors
Jain recommends a cautious strategy for short-term traders and investors.
“Key support is seen around ₹91,300–₹91,400 per 10 gm. A break below this could open room towards ₹90,800 levels. On the upside, ₹92,400 will act as immediate resistance.”
He advises long-term investors to accumulate in dips, while short-term traders can adopt a sell-on-rise approach until stability returns to geopolitical narratives.
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